How Much Does the Average Upper-Middle-Class Family Have Saved by Age 55?
If you earn well into the six figures, own a home in a good neighborhood and manage to take the occasional nice vacation, it's easy to assume your retirement savings are in solid shape. But according to financial professionals, the reality is often more complicated.
Here’s how much the average upper-middle-class family has saved by age 55.
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What 'Upper Middle Class' Actually Means in 2026
The upper middle class in 2026 is often defined by income — typically referring to households earning double or more than the median, so beginning at around $150,000 and up annually, according to Pew Research data. However, Ian Skjervem, CEO of Smart Investors Daily, added that net worth also needs to be factored in.
“Upper-middle-class families tend to have assets of more than $1 million, but not in the top 5% of the country, which begins around $3 million to $4 million,” Skjervem explained.
Geography also makes a difference.
“A family with $200,000 in Austin, Texas, has a very different financial situation than a family with $200,000 in San Francisco or New York," Skjervem added.
How Much Upper-Middle-Class Families Actually Have Saved by 55
The savings range for upper-middle-class households at 55 is wider than most people expect — and it doesn't always track with income.
Zac Brown, regional vice president at Primerica Financial Services, said that a reasonable benchmark is $500,000 to $1.5 million in investable retirement assets by age 55, “with many aiming to surpass $2 million depending on their desired retirement lifestyle."
However, Skjervem said he’s seen clients that make $250,000 a year come in at age 55 with less saved than those making half as much who started at an earlier age and spent less.
Skjervem also likes to reassure people who feel they are not on track for retirement that the average savings rate “is always a misleading indicator of the savings rate of the typical person” because it is “skewed by a few households with very large balances.”
Retirement Accounts vs. Other Assets
The majority of upper-middle-class savings at 55 are held in tax-advantaged retirement accounts. Brown sees between 60% to 80% in retirement accounts such as 401(k) plans, 403(b) plans and IRAs and 20% to 40% in taxable brokerage accounts, with the remainder spread across “cash reserves, real estate equity, business ownership and other investments,” he said.
“ [As income increases,] many families begin accumulating more of their assets outside retirement accounts because contribution limits eventually restrict how much they can save tax-deferred,” he explained.
Why Your ZIP Code Changes the Numbers
Geography plays a key role, too. A savings balance that equals security in one state may fall short in a high-cost city, the two experts agreed.
"A family earning $225,000 in rural North Carolina will often have far greater saving capacity than a family earning the same amount in New York City or the Bay Area,” Brown explained.
Housing, taxes, insurance and childcare costs can eat up different percentages of income. Brown encouraged clients to compare themselves to others with similar income and cost-of-living circumstances rather than relying on national averages.
Savings Milestones To Hit in Your 40s and 50s
Age-based benchmark formulas can offer a useful reality check on your retirement trajectory. Brown offered the following calculations.
Age 40: Approximately three times annual household income
Age 45: Around five times income
Age 50: six to eight times income
Age 55: eight to 10 times income
Retirement: often 10 to 15 times income, depending on retirement age, pensions and Social Security
If savings aren’t quite on track, Skjervem recommended catch-up contributions, which he called “one of the least used tools that people have in their prime earning years.” Catch-up contributions are available to those 50 and older with 401(k) accounts.
Behind at 55? Here's What To Do Now
Falling short of savings benchmarks at 55 isn't a financial death sentence but it does require an honest shift in approach.
Skjervem said don’t fall into regret, take action. The following are his three “most practical steps” to catch up.
Make the most of catch-up contributions in all available tax-advantaged accounts.
Consider delaying Social Security past age 62.
Cut back on fixed monthly expenses to free up more savings capacity.
"Consistency and intentionality are key here," Brown added. He recommended starting with professional help to get "a comprehensive plan” that allows you to “be honest about where you are and what areas you can start working on to improve that are within your control."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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