We are seniors. We have worked diligently for more than 40 years. We have regularly contributed to our profit-sharing, 401(k), HR-10, or similar defined contribution plan throughout our working days. We may also be fortunate to be beneficiaries of a defined benefit pension plan that provides us with an assurance of a certain level of income for the rest of our lives. We are entitled to Social Security benefits, and we may have aggregated a portfolio of assets outside of our tax deferred plans from which we intend to receive financial benefit as our working days with regular income draw to a close.
At present, a large percentage of investment wealth is held by those over the age of 65. The latest data show that the median wealth (one-half above and one-half below) of those between the ages of 65 and 75 is $206,000, and of those over 75, $216,000; the mean (or average) wealth for those groups is $848,000 and $648,000, respectively, which demonstrates that many in these groups have significant wealth. For those seniors with above average wealth, a sizeable portion of their assets are in tax deferred pension plans or investment portfolios.