An elegant upper class senior couple enjoying a glass of wine in their home – Yuliya Taba/Getty Images
The average American worker’s income eventually hits a ceiling in late middle age, which often leads to the same mistakes that mass affluent people make all too often. If you manage to handle the upper class, retirement will undoubtedly look different for you than it would for a middle-class counterpart. According to GOBankingRates, upper-class US retirees are among the top 75% to 90% of comers, with net worths between $714,000 and $2.1 million.
This broad swath of what is considered “upper class” can be influenced by regional factors, such as the cost of living in a particular state or city (a net worth of $1.5 million won’t get you the same lifestyle in New York as it does in Louisiana). Of course, the ability to retire in New York without depleting your savings could also be a sign of being an upper-class retiree, depending on how little it affects your retirement plans. A few other indicators that you’re among the upper-class retiree cohort revolve around your housing situation, health care management, how you navigate your Social Security benefits, as well as your spending behaviors and savings and investment strategies.
Read more: 11 Reasons Retirees Regret Moving to Hawaii
A mature man enjoying a hot drink on the balcony of a house with a view of mountains and trees. – Ascentxmedia/Getty Images
According to a 2025 study by Point2Homes, American seniors age 65 and older are leading the charge for rentals. Over the past 10 years, the number of retired renters in this age group has increased by 2.4 million, a 30% increase. That said, it’s probably no surprise that most upper-class retirees own their homes.
According to RentCafe, only one in 11 millionaires are renters. The vast majority of millionaires – 143,320 – own their homes, and only 13,692 millionaires rent. Retirement-age baby boomers account for 36 percent of the nation’s millionaire homeowners; in contrast, only 13% of wealthy boomers rent their homes.
Notably, the RentCafe study found that silent generation millionaires own a 5% slice of the nation’s housing stock. However, this is explained by the declining numbers of that cohort. According to Statista, only 4.48% of the country’s population belongs to this generation.
A smiling physiotherapist helps a smiling mature woman to exercise. – Paperkites/Getty Images
According to a June 2025 study by Fidelity, the average 65-year-old retiree can expect to spend $172,500 on various health care costs during retirement. A November 2025 survey by KFF found that 44% of all seniors had difficulty affording healthcare; even among those who had health insurance plans, 42 percent still struggled with costs. This is not surprising as insurance costs are staggeringly high. On ValuePenguin, the average cost in 2026 of silver plan health insurance (where the insurer covers 70% of the bill) for people nearing retirement age is about $1,766 per month. A platinum plan that covers 90% of healthcare costs will cost even more. Meanwhile, according to the federal long-term care insurance program, the average annual cost of nursing home care is $112,420.
However, because of their solid financial status, upper-class seniors have easier access to healthcare than the average retiree. According to the KFF study, 70 percent of seniors who earned $90,000 or more found it relatively easy to cover their health care bills. So, if medical costs are not a source of stress for you in retirement, you may very well be an upper-class retiree.
A financial advisor guiding a mature couple through their investment portfolio. – Peopleimages/Getty Images
According to the Federal Reserve’s 2022 Survey of Consumer Finances, the top 20 percent of income earners had between $200,000 and just over $558,000 in retirement accounts. By comparison, the middle class had between $20,000 and just over $74,000 in retirement accounts. Based on these numbers, upper-class Americans had up to 28 times more money ready for retirement than their middle-class counterparts.
According to WiserAdvisor, high-income retirees are likely to have investments in private equity, hedge funds and stocks. These are high-risk, high-reward investments that historically provide the most benefits to high-end investors. Meanwhile, those in the middle class generally opt for safer investment vehicles such as bonds or switch to more moderate portfolios once they reach retirement age. One could argue that high earners can safely take more risks than their middle-class peers. That said, upperclassmen also tend to have financial advisors to help them navigate retirement investments.
A middle-aged woman relaxing on a couch in her home in front of expansive windows. – Ryan McVay/Getty Images
If you’re in the upper class at age 60, you’re in a unique position to wait to claim your Social Security benefits. Waiting for the highest possible benefit payments is one way that people with higher incomes stay ahead financially.
According to the Social Security Administration (SSA), the maximum Social Security benefit in 2026 is $5,181 per month. You’d have to wait until age 70 to claim that amount, which is $1,029 more per month than the full pension at age 65. Annually, the difference amounts to an additional $12,348.
Claiming Social Security benefits earlier, at age 62, pays a significantly reduced monthly benefit of $2,969. Here, the difference is more striking – you’ll get $2,212 less monthly. If you’re forced to start taking withdrawals at age 62, you’ll get $26,544 less annually than an upper-class retiree with the resources to wait until age 70 to collect Social Security. A big change coming to Social Security in some states may mean the upper class will do even better with their benefits in the future.
A mature couple shake hands with their accountant at the dining room table. – Jacob Wackerhausen/Getty Images
Taxes are an inevitable part of life, but not knowing how to minimize your tax liability in retirement can be especially costly. Having multiple income streams can have a profound impact on your tax situation, and upper-class retirees tend to have tax professionals to guide them through the uncertainty. Standards like the 4% rule, where upper-class retirees withdraw 4% of their investment portfolio each year, help reduce the tax burden in retirement. A strategy of withdrawing from taxable accounts before diving into tax-free ones, such as Roth IRAs, allows upper-class retirees to better manage the tax impact of their retirement. Tackling your tax burden first makes it easier to calculate what you’ll have to live on later.
In addition to the retirement strategies mentioned above, upper-class retirees use offshore accounts and complicated trusts that shield them from taxation. Some move to jurisdictions where they can pay less tax. It’s no coincidence that many US cities with the fastest-growing wealthy populations are in states with no income tax or Social Security, including Florida, Washington and Texas.
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