Apr 13, 2026
Marie Incontrera earns between $300,000 and $400,000 a year, but she says she feels more financial anxiety now than when she was making just $15,000 as a struggling musician.
“I feel very lucky. I feel privileged, but I do not feel rich,” Incontrera said. “I know that I am on a hamster wheel with my business,” she told CNBC, highlighting that her money stress has never fully disappeared (1).
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Marie’s not alone — many Americans underestimate how well they’re actually doing financially.
Between inflation, rising housing costs, and constant headlines about needing millions to retire comfortably, it’s easy for people to feel like they are behind. Survey findings even suggest that Americans think they now need more than $2 million to feel wealthy (2).
But the numbers tell a different story.
Signs you’re financially ahead
Even if you don’t feel “rich,” two simple habits can reveal whether you’re in a stronger financial position than many Americans. Here’s what to look for:
1. You have a cash cushion
According to Federal Reserve data (3), the median American household holds roughly $8,000 in liquid savings. If your savings in bank accounts or other easily accessible funds exceed the median (around $8,000) — especially if you’re also working toward at least three months of living expenses — you’re ahead of most households. This buffer helps cover emergencies, provides peace of mind, and adds flexibility for future financial goals.
2. You consistently spend less than you earn
Financial experts, including those at Fidelity Investments, say that living below your means is one of the clearest signs of financial health. If you usually have money left over at the end of the month to save or invest, you’re doing something that many Americans struggle with. This habit builds wealth over time and helps ensure that you’re prepared for unexpected expenses, even if your income isn’t sky-high (4).
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The top signs you might be richer than you think
Not sure where you stand? Money Digest recently shared 11 signs that you may be doing better than the typical retiree, even if you don’t feel like it (5):
1. You feel confident about your retirement plan
A Nationwide Retirement Institute survey found that 55% of seniors regret their financial planning after retiring, with just under half feeling comfortable with their strategy. Only 20% report not having to dip into their savings yet, because their expenses are covered by income sources like Social Security or investment returns. If you’re among those who feel confident in your retirement plan, you’re ahead of the game (6).
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2. Your net worth is above $409,900
Net worth is often the strongest indicator of retirement wealth. The Federal Reserve’s Survey of Consumer Finances reports that the median net worth for retirees aged 65 to 74 is about $409,900, while for those 75 and older, it falls to roughly $335,600. If your net worth exceeds these amounts, you’re wealthier than at least half of retirees in your age group (7).
3. Your household income exceeds $56,680
Census data shows the median household income for Americans 65 and older is about $56,680. If your income is higher than this, you’re ahead of the typical retiree household (8).
4. You have more than $250,000 in retirement accounts
Fidelity data shows that average retirement account balances for people in their early 60s are roughly in the mid‑$200,000s range, though averages can be skewed by very large accounts and medians are much lower. If your total retirement savings exceed typical averages or medians for your age group, you’re above what many Americans have saved (9).
5. You hold about $160,000 or more in stocks
Federal Reserve data show that the median retirement account balance for households aged 65–74 is about $200,000. While stock ownership varies widely and many retirees hold some portion of their portfolio in stocks, typical direct stock holdings are generally much lower than $160,000.
Allocating a larger share of your portfolio to stocks may support long‑term growth, but your asset mix should align with your risk tolerance and retirement timeline.
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6. Your life insurance policy has over $12,000 in cash value
Life insurance isn’t always counted as part of retirement wealth, but it can provide an additional financial cushion. Money Digest revealed that among retirees aged 65 to 74, the median cash value of life insurance policies is around $12,000. Permanent policies can also offer liquidity through loans or withdrawals, though doing so may reduce the death benefit.
7. Your home is worth more than $320,000
For many retirees, home equity is their largest asset. Money Digest reports that the median home value for retirees aged 65 to 74 is about $320,000 (5).
Nearly 80% of Americans over 50 own their homes, and more than half have no mortgage — making housing wealth a key contributor to retirement security.
8. Your debt is below $45,000
Debt levels tend to decline in retirement, but many seniors still carry balances. According to the AARP, the median debt for retirees aged 65 to 74 is about $45,000. For those 75 and older, it drops to roughly $36,000. If your debt is below these amounts, you’re likely in a stronger financial position than the average retiree (10).
9. Your Social Security benefits are above average
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The average monthly Social Security benefit is about $2,071, depending on lifetime earnings and the age you start claiming. Retirees who worked longer or delayed claiming benefits can receive much more. In 2026, the maximum monthly benefit at age 70 is approximately $5,181 (11).
10. Social Security isn’t your main income source
About 39% of men and 44% of women rely on Social Security for at least half of their retirement income. If less than half of your income comes from Social Security, it usually means your savings and investments are contributing more to your retirement security.
11. You pay higher Medicare premiums
High-earning retirees pay an additional surcharge known as the Income-Related Monthly Adjustment Amount (IRMAA) on Medicare Parts B and D.
As reported in Kiplinger, for 2026 the extra charge kicks in when income exceeds:
- $109,000 for individuals
- $218,000 for married couples filing jointly
Those thresholds place retirees well above the typical income level for seniors (12).
Many Americans assume they need millions to feel financially secure in retirement, but the data show that many people may be in better shape than they think. In other words, plenty of people who feel “average” are actually financially stronger than most of their peers, and recognizing this can provide peace of mind about their financial standing.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1)(2); Bankrate (3); Fidelity Canada (4); Money Digest (5); Nationwide Retirement Institute (6); CNBC (7); U.S. Census Bureau (8); Fidelity (9); AARP (10); Social Security Administration (11); Kiplinger (12)
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
