It’s Probably Less Than Your Goal

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It’s Probably Less Than Your Goal

Can You Guess What It Takes To Be Wealthy In Retirement? Hint: It’s Probably Less Than Your Goal

When we talk about

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, the image might vary depending on your goals. For some, it’s about living stress-free in a sunny, affordable paradise. For others, it’s being able to splurge on their grandkids, hobbies or bucket-list adventures. Building real wealth in retirement comes down to two things: net worth and reliable income streams.

Net Worth Benchmarks

To land in the

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, you need an average net worth of $1.9 million, according to Federal Reserve data. However, many financial experts agree that a solid net worth goal starts at $1 million – excluding your primary home’s value.

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Why exclude the house? Unless you plan to sell it and live in an RV, it’s more of an asset on paper than something that funds your day-to-day life. Your net worth, instead, should include things like:

• Retirement accounts (401(k)s, IRAs, etc.)

• Investments (stocks, bonds, mutual funds)

• Real estate (beyond your primary residence)

• Other valuables minus any debts or liabilities.

The key is steady saving, smart investing and avoiding dragging debt into your golden years.

Reliable Income Streams

Wealthy retirees know one secret: it’s not just what you’ve saved; it’s what keeps flowing in. Here’s what typical income streams might look like:

•

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: It’s not a fortune but helps cover the basics.

• Investments: Dividends and interest from stocks, bonds or mutual funds can provide a steady income.

• Rental Properties: Real estate can offer consistent cash flow, assuming you’ve planned well.

• Pensions: If you’re one of the lucky few with a pension, it’s a major bonus.

The goal here?

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covers your living expenses, so you don’t need to dip into your savings for everyday costs.

Trending: The average American couple has saved this much money for retirement —

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?

Factors That Shape “Wealthy”

Retirement is deeply personal, but a few big factors can determine whether you feel wealthy or stretched:

• Where You Live: A $1 million retirement fund stretches much further in the Midwest than in coastal hot spots.

• Health care Costs: Medical expenses can add up fast. Experts estimate a 65-year-old couple retiring today will spend about $315,000 on health care.

• Lifestyle Choices: Want to travel frequently or pick up a new hobby? Those extras will affect how much you need.

Story Continues

Levels of Retirement Freedom

There’s no universal definition of wealth, but here’s a simple breakdown to help you frame your goals:

• Lean Retirement (FIRE): $800,000 to $1.6 million lets you live simply but comfortably.

• Standard Retirement: $1.5 million to $3 million gives you flexibility without too much worry.

• Luxurious Retirement: $5 million+ when you’ve reached the “do whatever you want” level.

See Also: The average 401(k) balance soars to a record-breaking high –

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Managing Your Big Expenses

In retirement, a few expenses will take up most of your budget:

• Housing: It’s often the biggest cost. Downsizing or paying off your mortgage can make a huge difference.

• Health care: Plan for rising costs here, whether it’s routine care or unexpected emergencies.

• Food and Transportation: These add up, but they’re easier to manage if you’ve handled the big-ticket items.

At its core, a wealthy retirement isn’t about dollar signs but freedom. To join the top 10%, aim for a net worth of $1.9 million or more, supported by income streams that give you stability. Pay down debt, keep health care in mind and plan based on your lifestyle and where you live.

With

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, you can create a retirement where you’re not just surviving but truly thriving. Because that’s what being “wealthy” in retirement means.

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