How the Upper Middle Class Can Retire Rich

Sean Bryant

Tue, Apr 29, 2025, 6:04 AM 7 min read

You spend your working years building wealth and putting yourself in a position to live off a comfortable retirement income. However, once you reach age 65 (or more accurately, age 67 or even 70), it becomes less about growing your money and more about how to preserve it — in other words, how to avoid outliving your savings and investments. Instead of working longer, you could try saving smarter, no matter your economic situation or social class.

When retirement planning, you should focus on accumulating wealth over the years and imitating financially savvy upper-middle-class individuals who build their nest eggs comfortably. Here are four ways the American upper middle class can make their wealth before they retire — and three ways to maintain the same social status throughout retirement.

Watch Out: 4 Mistakes the Upper Middle Class Are Making With Their Money in the Trump Economy

Read Next: 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth

Living beneath your means is the most important thing you can do to build wealth, especially if you’re saving for a major purchase or life event. Even if you are in the top income quintile, you can still just cover your basic living expenses and keep them much lower than your income each month.

By minimizing expenses, you’re able to avoid debt and have the opportunity to use your disposable income to grow your net worth. This type of savings plan can not only boost your median household income but also help you better reach your retirement goals.

Learn More: Here’s How Much You Need To Earn To Be ‘Rich’ in Every State

Having goals is important in most aspects of life, especially regarding finances. No matter your occupational status or skill set, as part of the wealth-building process, you should take the time to understand what’s truly important to you and then devise a plan to accomplish those goals.

For example, you may want to travel frequently during retirement. To do that, you’ll need to understand how much it will cost and be able to budget for the expense. By laying out financial goals, you can build a road map for accomplishing each objective.

Emergency funds are a must for everyone, regardless of age. Unexpected expenses will happen at some point in your life, but having the money available will help you avoid credit card debt. Many financial advisors recommend that you have at least three to six months’ worth of expenses in emergency savings in case you experience a financial shock, such as a job loss or a hospital stay.