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If you’re planning your retirement, you probably have a savings goal in mind — and according to a Northwestern Mutual survey (1), many Americans believe the “magic number” they need to live comfortably in 2026 is $1.46 million.
But retirement is a spectrum, not a goal post, and what will be a comfortable retirement for each person depends on a variety of factors.
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Comparing your numbers to the actual net worth of retirement-age seniors will give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.
Where do you stand currently?
A retirement nest egg worth $1.46 million may sound impressive — and for many people, this goal may seem out of reach.
A Congressional Research Service review of 2022 Federal Reserve data found that only 54.3% of American households had retirement accounts. And of those, only 4.6% had a net worth of more than $1 million (2).
It’s no surprise that many retirees feel uneasy about their finances.
According to Schroders 2025 US Retirement Survey (3), only two in five retirees believe they have enough money for retirement.
Meanwhile, 62% admitted they don’t know how long their money will last.
Here’s how assets are divided for households headed by a senior ages 65 to 69, based on the Federal Reserve’s Survey of Consumer Finances (4) — and what you can do to strengthen your retirement strategy.
1. Economically Weak (Household Net Worth $69,500 and Less)
Seniors with net worth less than $69,500 fall in the bottom 25% of retirees.
This group is particularly vulnerable to financial shocks and is highly dependent on public protection programs such as Social Security and Medicare.
If you’re approaching retirement with less than this number, it might be a good idea to take a closer look at your finances. Consider looking for additional income, finding more ways to save money, or even delaying your retirement to be less vulnerable in your senior years.
The first step towards understanding your financial situation is to assess where your money is going at all times.
To keep yourself on track, you might consider reevaluating your budgeting practices with apps like monarch money.
This way, you can quickly and seamlessly spot any unexpected charges, such as unwanted subscriptions. You can also receive custom notifications regarding upcoming payments, allowing you to Stay on top of your bills And the chances of missing a payment or incurring late fees will be reduced.
Monarch Money keeps all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for keeping track of grocery stores
The app has also been well reviewed. Forbes ranked monarch money Their best budgeting apps for 2025, as did The Wall Street Journal.
Even better, if you sign up now, you can get a seven-day free trial and 50% off your subscription for the first year with the code. WISE50. This way, you can see if Monarch Money works for you before committing long term.
After working out your budget, the next step is to cut recurring expenses. Insurance premiums are a good place to start — especially if you haven’t checked your rates in a while.
Car insurance premiums have increased by 55% between February 2020 and the end of 2025, according to Bureau of Labor Statistics data analyzed by NPR (5). On the other hand, home insurance premiums have increased three times faster than inflation since 2021, according to data from Insurify (6).
There is a silver lining – you can reduce your insurance costs by comparing rates from different insurers and choosing the best offer. And it is absolutely free.
You can shop for home insurance rates from reputable insurers near you at officialHomeInsurance.com(7). By choosing the best possible offer you can save up to $482 on average.
For those who want to change car insurance carriers, there are platforms like to insure Can help. You can save an average of $1,100 in as little as three minutes by comparing quotes and selecting the best deal available.
2. Lower middle class (household net worth between $69,500 and $394,300)
According to the Federal Reserve, the average net worth of these households is $394,000. If your wealth is under this benchmark, nearly half of all senior households in this age group are wealthier than you.
This group is not necessarily economically weak. However, it is far from a comfortable retirement. Senior citizens in this category may be forced to stick to a tight budget, cutting costs where possible.
If you’ve already decided on a budgeting strategy, now is the time to start thinking about saving any spare change you have — especially if you’re not yet at retirement age.
with chestnutYou can automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts from leading investment firms like Vanguard and BlackRock.
For example, if you buy a donut for $3.25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. So a $3.25 purchase automatically becomes a 75-cent investment in your future.
3. Solid middle class (household net worth between $394,300 and $1.16 million)
Senior citizens whose net worth is between the 50th and 75th percentile can be described as middle class. This means access to a more comfortable retirement.
But with increasing economic uncertainty, protecting your wealth should be a top priority. Investing in safe-haven assets like gold can help protect your portfolio from market risks and protect against inflation.
A gold IRA is one option for building your retirement fund with an inflation-hedging asset.
Opening a Gold IRA with goldco Allows you to invest in gold and other precious metals in physical forms while providing significant tax benefits of an IRA.
4. Upper middle class (household net worth between $1.2 million and $2.9 million)
Breaking into the upper middle class may be the first major hurdle to achieving a retirement lifestyle consistent with your highest earning years.
If you are a high earner and planning for retirement, the doors of this prestigious club should be within your reach. However, to get there you still need strong savings habits and flexible investing over the long term.
Diversification can help as it ensures that you are not overly invested in any one asset. Apart from gold, there are many ways to access it, including investing in real estate.
Backed by world-class investors like Jeff Bezos, Arrived gives you Buy Shares of SEC-Qualified Investments Residential properties and vacation rentals in prime locations across the US
And any rental income generated is distributed to you monthly, while any property appreciation is paid out as capital gains at the end of the investment period. This way, you can sit comfortably and Collect passive income while Arrived does all the work.
5. Affluent (household net worth $2.9 million or more)
Only the top 10% of senior households between the ages of 65 and 69 have a net worth of more than $2.9 million. These affluent retirees are usually former bankers, lawyers, C-suite executives or business owners who are accustomed to a financially free lifestyle.
This is even when the real threat of lifestyle decline may prevail. After all, now that you’ve almost made it, why not indulge in a little more luxury?
But living below your capacity now may yield benefits later. If you’ve already maxed out your 401(k)s and IRAs, consider investing in real estate crowdfunding platforms to diversify your portfolio while earning dividends.
Mogul was founded by former Goldman Sachs real estate investors and their team Chooses the top 1% of single-family rental homes nationwide For you. This lets you receive monthly rental income, real-time appreciation and tax benefits – without the need for huge upfront payments or 3am tenant calls.
Mogul has delivered an average annual return of 18.8%, while its cash-on-cash yields average 10-12% per annum. Offers often sell out in less than three hoursInvestments typically range between $15,000 and $40,000 per property.
Getting started is a quick and easy process. Simply sign up, browse the available assets, verify your information and start investing like a mogul.
6. Top 1% (household net worth $21.7 million or more)
Only the top 1% in this category have a net worth of more than $21.7 million. This is a group of ultra-wealthy that most Americans can only dream of joining.
If you fall into this group, your retirement planning probably seems a little unconventional. Your focus may be less on budgeting and more on asset allocation, tax optimization and estate planning.
It is no surprise that ultra-wealthy people understand the importance of diversification and are increasingly turning to such alternative assets. But there is one alternative asset in particular that is globally recognized and has almost zero correlation with the S&P 500. It is also rare by design, with a tendency to appreciate in value over time.
The property in question? Post-modern art.
Until now, ownership of art was a complex process involving a network of brokers.
Now, shop online Everyday investors can get access to fractional shares of works by Banksy, Basquiat, Picasso and others.
From its 31 exits so far, Masterworks investors have received representative annual net returns of 14.6%, 17.6% and 17.8% on assets held for more than a year.
*Note that past performance is not indicative of future returns. Investing involves risk. View important Regulation A disclosures heremasterworks.com/cd (8).
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Northwestern Mutual (1); congress.gov (2); Schroders (3); US Federal Reserve (4); NPR (5); insure(6); Official Home Insurance (7); Masterwork (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Smart Wealthhabits shares practical insights on personal finance, wealth building, and small business strategies to help readers make smarter financial decisions and achieve long-term financial success.
