1 week ago
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Think joining the top 4% of households means you need a vault full of gold or some secret hedge fund? Think again.
According to data from LIMRA reported by Rethinking65, only 4% of all U.S. households have $2 million or more in investable assets. That may not seem huge, but it represents a significant financial milestone that only a small fraction of households ever reach.
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Breaking it down further, the numbers shift depending on age. Among households headed by someone aged 60 or older, the percentage increases to 7%. For those aged 40 to 85, just 6% of households reach that $2 million mark in investable assets. These assets include IRAs, defined contribution plans, and investment accounts, but not home equity or personal property.
Crossing the $2 million threshold puts a household in a rare financial bracket. But what does that mean for their future?
LIMRA's research shows that having $2 million comes with a strong sense of financial security, especially in retirement. Households with $2 million or more overwhelmingly feel confident they won't run out of savings by the time they hit 90. Eighty to ninety percent agreed their savings would last, with over half strongly agreeing.
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That confidence starts to slip for households with between $1 million and $2 million. Only 28% of these households strongly agreed their savings would last their lifetime, and the percentage drops further for those with less savings.
Interestingly, many retirees in this group report their household income is sufficient to cover their basic living expenses. But for those planning their retirement, the future feels less certain. Only 44% of future retirees expect their income from sources like Social Security or pensions to fully cover their expenses.
Also Read: I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
So, where do you stand? Being in the top 4% means more than just crossing a financial milestone. It's about having the peace of mind that comes with knowing your savings will carry you through retirement. For those still working towards it, the journey to that number is just as important as reaching the goal.
English (US) ·