Are You In The Top 10%? Here's What It Really Takes To Make The Cut And Rank Among The Richest

In a time when conversations about wealth and inequality are everywhere, you might wonder where exactly on the spectrum you fall. 

One of the most common benchmarks is the top 10% of earners in the U.S., representing the highest tier of household incomes. But what does it take to make the cut? 

Don't Miss:

What's the National Income Threshold?

To join the top 10% of earners in the U.S., the magic number is $191,406 per year, according to recent data from the U.S. Census Bureau. That means if your household pulls in that amount or more, you're in the top 10% nationally. However, there's more to this story than a single dollar amount. Factors like age and location greatly influence what counts as "top tier."

Income by Age: Your Earnings Grow as You Do

Age plays a big role in where your income stacks up. Most people see their earnings increase as they move further into their careers. Here's a look at what you'd need to earn to be in the top 10% by age group:

  • Under 35: $122,000
  • 35-44: $210,000
  • 45-54: $255,000
  • 55-64: $250,000
  • 65-74: $188,000
  • 75 and older: $128,000

These numbers show that peak earning years for top 10% households are generally in the 45-54 age range, when a $255,000 annual income puts you at the top.

Trending: Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.

Location, Location, Location: Income Thresholds by State

Where you live can also make a major difference in what it means to be a top earner. In states with high living costs, like California, the top 10% threshold is much higher than the national figure – around $341,276 per year. Meanwhile, the 90th percentile income in Mississippi is closer to $189,922. Generally, the income needed to be a top 10% earner is higher in big cities and wealthier states than in rural areas or regions with lower living costs.

How the Top 10% Compares to the Average U.S. Household

To put things in perspective, the real median household income was $80,610 in 2023, according to Census data.

That's a big gap compared to the top 10% threshold, highlighting just how significant income inequality has become in America.

See Also: Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.

Beyond Income: Net Worth

Income is only part of the picture. Wealth – meaning the assets you've accumulated over time – can give a fuller sense of financial stability and security. Here's what we know about wealth in the top 10%:

  • The average net worth of households in this group is about $9.1 million.
  • To be in the top 10% by net worth, you'd need at least $1.9 million.

Earning a high income isn’t the only way to achieve this level of wealth. Education, smart investing, home ownership and careful debt management also play key roles.

  1. Education – Households in the top 10% often have at least a college degree, which can mean earning around $300,000 more annually than those with only a high school education.
  2. Investments – The top 10% tends to invest in stocks, mutual funds and other assets that grow wealth over time.
  3. Real Estate – Home equity is a significant component of wealth for many top earners, giving them a financial cushion.
  4. Debt Management – While top earners may have large mortgages, they usually have a lower debt-to-asset ratio than other income groups.

See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.

Being in the top 10% isn't just about a high paycheck. Age, location and smart financial decisions play into who makes the cut and who doesn't. And while income can get you into the top tier, building wealth takes a longer-term approach. 

Whether you're striving to join this group or just curious, understanding what it takes can give you perspective on your financial journey. 

Speaking with a qualified financial advisor can help you see where you stand and map out a plan to grow your wealth. They'll work with you to set goals, make smart investments and build a strategy that suits your lifestyle. After all, achieving financial success isn't just about how much you make – it's about making the most of what you have and setting yourself up for long-term security.

Read Next:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Personal Financenews accessPersonal Finance Access
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!