Core Insights - The transition from earning a paycheck to retirement changes the focus from income to net worth, complicating the classification of retirees as "upper-middle class" or "wealthy" [1][3] - The U.S. Census Bureau's quintile breakdown provides a framework for estimating class labels based on income percentiles [2] Income and Net Worth - For retirees, net worth is a more significant measure than income, with the Federal Reserve's Survey of Consumer Finances being a key source for understanding net worth by age [3] - Households aged 65 to 69 need a net worth of approximately $550,000 to be considered upper-middle class, while those aged 70 to 74 require around $700,000 [4] - Entering the upper class starts at about $1.5 million for ages 65-69 and around $1.65 million for ages 70-74, with the top 5% of retirees starting at approximately $7 million in net worth for both age groups [5] Wealth Composition - Net worth calculations include primary home equity, which significantly contributes to wealth for older Americans, as many retirees own their homes outright [6] - Real estate appreciation can elevate a retiree's net worth, pushing them into higher wealth categories, especially in high-demand areas [6]