Retirement Savings: How Much You Need To Be Upper Middle Class in These 5 Hotspots

Using the Pew Research Center’s definition, you’d need to earn between two-thirds and double the median income in your area to be considered middle class.

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Since the Census Bureau last reported the median household income was $74,580, this means you’d need to earn between $49,229 and $149,160 a year.

But this amount is only for those who are currently working and really only covers the middle class, not the upper-middle.

The Pew Research Center estimates that upper-class households earn at least $145,500. So, it’s safe to say that the upper-middle class is anyone whose income is on the higher side of the range — likely around $100,000 or above.

The amount you’d need to be an upper-middle-class retiree varies quite a lot. Many retirees need less money for everyday living — especially if they’re in good health, aren’t still financially supporting adult children and have a paid-off home.

But location also plays a huge role in how far your money will go. If you’re interested in living an upper-middle-class lifestyle as a retiree, here’s approximately how much savings you’d need to live in these retirement hot spots .

Northwest Arkansas

• Estimated required savings: $60,000 to $80,000 per year in retirement

Parts of northwest Arkansas, like Fayetteville, have a generally lower cost of living than the rest of the country. For retirees who want to enjoy the natural beauty and amenities of larger cities without the higher cost of living, this region could be worth the move.

“Arkansas is one of only two states where you can live on less than six figures and still be upper middle class,” said Scott Lieberman, the founder of Touchdown Money .

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DC or Maryland

• Estimated required savings: $170,000 per year in retirement

While you might be able to live on under $100,000 a year in some areas and still be considered upper middle class, you’d need much more than that in places like Washington D.C.

“The wealthy DC suburbs of Maryland ensure that you’d need at least $170,000 per year to be considered upper middle class,” said Lieberman.

If you opt for a neighborhood a bit further out, or one with smaller homes, you could get by just fine with less than that amount. It all depends on your individual preferences and lifestyle requirements.

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Sunnyvale, California

• Estimated required savings: $125,000 per year in retirement

California is a popular retirement destination, but it comes with some steep costs. Those who want to live the upper middle class lifestyle there will need at least $125,000 a year in retirement — possibly more.

“In high-cost areas like Sunnyvale, California, retirees might need upwards of $2.5 million in savings to maintain an upper-middle-class lifestyle, considering the high living expenses and housing costs,” said Dennis Shirshikov, a finance professor at the City University of New York .

Anyone who’s thinking about retiring should also factor in their estimated time in retirement. Someone who expects to live more than 20 years in retirement will need more savings to achieve their desired lifestyle.

Cleveland

• Estimated required savings: $50,000 per year in retirement

Midwestern states are known for being less expensive than, say, those on either coast. This is also true of Ohio.

“In more affordable cities like Cleveland, Ohio, a retiree could enjoy an upper-middle-class lifestyle with around $1 million in savings,” said Shirshikov.

The $50,000 a year estimate is once again based on a 20-year retirement timeframe. Those who plan to retire early or expect to need more time will need to adjust their savings accordingly.

Riverside, California

• Estimated required savings: $200,000+ per year in retirement

The cost of living in Riverside is lower than in, say, Los Angeles, but it’s higher than the national average.

Everything from housing to groceries tends to be more expensive there, so it should come as no surprise that retirees will need more to sustain that upper-middle-class lifestyle.

“In Riverside, California, $200,000-$250,000 in annual retirement income would provide a comfortable lifestyle,” said Joe Stance , an active real estate investor in the area.

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GOBankingRates also conducted a study to determine what it means to be in the upper-middle class in 200 major cities. While the results are based on working incomes, they can still be used as a benchmark for those who are saving up for retirement.

These are the U.S. cities where the upper middle class earn the least annually:

• Birmingham, Alabama — $66,055 to 84,928
• Jackson, Mississippi — $65,634 to 84,386
• Dayton, Ohio — $64,467 to $82,886
• Detroit, Michigan — $58,739 to $75,522
• Cleveland, Ohio — $57,977 to $74,542

And these are the U.S. cities where the upper middle class earn the most annually:

• Naperville, Illinois — $223,617 to $287,508
• Frisco, Texas — $224,882 to $289,134
• Bellevue, Washington — $232,635 to $299,102
• Fremont, California — $262,925 to $338,046
• Sunnyvale, California — $271,454 to $349,012

According to Lieberman, “To be considered upper middle class, you need to be in the top 20% of all incomes. In general, the more rural a location is, the less you’ll generally need to live there comfortably.”

He continued, “For the most part, states without big cities tend to have a lower cost of living, while states with larger, more urban areas like Massachusetts and New York tend to be among the most expensive.

“If you’re struggling to get ahead, you might want to look at the more rural South for retirement. If you live comfortably, you can try living in New England or on the West Coast.”

This article originally appeared on GOBankingRates.com : Retirement Savings: How Much You Need To Be Upper Middle Class in These 5 Hotspots