5 Signs You're An 'Upper-Class' Retiree
The average American worker's income eventually hits a ceiling in late middle age, often leading to mistakes that mass-affluent people make all too often. If you manage to work your way into the upper class, retirement will undoubtedly look different for you than it would for a middle-class counterpart. According to GOBankingRates, upper-class retirees in the U.S. are among the top 75% to 90% of income earners, with net worths spanning $714,000 to $2.1 million.
This wide berth of what is considered "upper class" can be influenced by regional factors, like 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 would in Louisiana). Of course, the ability to retire in New York without draining your savings could also be a sign that you're an upper-class retiree, depending on how little it impacts your retirement plans. A few other indicators that you're among the cohort of upper-class retirees revolve around your housing situation, healthcare management, how you navigate Social Security benefits, as well as your spending behaviors and savings and investment strategies.
You're more likely to own a home
Per a 2025 study by Point2Homes, American seniors 65 years and older are leading the charge to rent. Over the last 10 years, the number of retiree renters in this age group has grown by 2.4 million, representing a 30% increase. That said, it probably comes as 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. Individuals from the retirement-age baby boomer cohort make up 36% of the nation's millionaire homeowners; in contrast, only 13% of wealthy baby boomers rent their dwelling.
Notably, the RentCafe study found that the Silent Generation's millionaires own a 5% sliver of the nation's housing. However, that's explained by that cohort's dwindling numbers. According to Statista, a mere 4.48% of the country's population belongs to this generation.
You don't sweat the cost of healthcare
According to a June 2025 study by Fidelity, an average 65-year-old retiree can expect to spend $172,500 on various healthcare-related costs throughout the course of their retirement. A November 2025 survey by the KFF found 44% of all seniors had difficulty affording their healthcare; even among those who had health insurance plans, 42% still struggled with the costs. It's not surprising, since insurance costs are staggeringly high. Per ValuePenguin, the 2026 average cost of silver-plan health insurance (where the insurer covers 70% of the bill) for individuals approaching retirement age is around $1,766 per month. A platinum plan covering 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, thanks to their sound financial standing, upper-class seniors have easier access to healthcare than the average retiree. Per the KFF study, 70% of seniors who earned $90,000 or more considered it relatively easy to cover their healthcare bills. So, if medical costs aren't a cause of stress for you in retirement, it's quite possible that you're an upper-class retiree.
You have a high-risk, high-reward investment portfolio
According to the Federal Reserve 2022 Survey of Consumer Finances, the top 20% of income earners had $200,000 to just over $558,000 in retirement accounts. By comparison, the middle class had anywhere from $20,000 to 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.
Per WiserAdvisor, high-income retirees are likely to have investments in private equity, hedge funds, and stocks. These are high-risk but high-reward investments that historically offer the most benefit to upper-class investors. Meanwhile, middle-class earners generally opt for safer investment vehicles like bonds or switch over to more moderate portfolios once they reach retirement age. It could be argued that high-income earners can safely take on more risk than their middle-class peers. That said, seniors in the upper class also tend to have financial advisors to help them navigate investing in retirement.
You're in no hurry to collect Social Security
If you're in the upper class in your 60s, you are in a unique position to wait to claim your Social Security benefits. Waiting for the highest benefit payments possible is one of the ways 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 would have to wait until you were 70 years old to claim that amount, which is $1,029 more per month than the full retirement benefit at 65 years old. Annually, the difference amounts to an extra $12,348.
Claiming Social Security benefits earlier, at 62 years of age, pays out a significantly reduced monthly benefit of $2,969. Here, the difference is more striking — you would get $2,212 less on a monthly basis. If you're forced to start making withdrawals at 62, you'll receive $26,544 less annually than an upper-class retiree with the resources to wait until they're 70 to collect Social Security. A major change coming to Social Security in some states may mean the upper class will do even better with their benefits in the future.
You pay as little tax as possible
Taxes are an inevitable part of life, but not knowing how to minimize your tax liability in retirement can be especially costly. Having diverse streams of income can have profound impacts 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% from their investment portfolio every year, help lower their tax burden in retirement. A strategy of withdrawing from taxable accounts before dipping into tax-free ones, like Roth IRAs, allows upper-class retirees to better manage the impact of taxes on their retirement. Dealing with the tax burden first makes it easier to calculate what you'll have to live on later.
Aside from the aforementioned withdrawal strategies, upper-class retirees employ offshore accounts and complicated trusts that protect them from taxation. Some move to jurisdictions where they can pay less in taxes. It's no coincidence that many U.S. cities with the fastest growing wealthy populations happen to be in states with no tax on income or Social Security, including Florida, Washington, and Texas.