What net worth is wealthy?
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia.
A high-net-worth individual, or HNWI, might be defined differently among certain financial institutions. But in all cases, a high-net-worth individual is someone with a large amount of wealth. Typically, a high-net-worth individual has assets of between $1 million and $5 million.
The main measure of wealth is net worth: the total value of your household's assets (like houses and savings), minus debts (like mortgages and student loans).
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
Let's break it down with a cold splash of truth. There are about 22 million people in the US sitting on a net worth of over $1 million. That might seem like a hefty squad of millionaires to you, but let's put things into perspective. That's less than 7% of the U.S. adult population, my friend.
1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.
Some sources define the upper middle class as anyone making a lot of money but haven't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.
How can you tell if someone is rich?
- They Value Their Time. ...
- They Don't Talk About Money. ...
- Their Things Are Customized. ...
- They Own Multiple Properties. ...
- They Have an Expensive Hobby. ...
- They Are Well-Traveled. ...
- They Can Speak Multiple Languages. ...
- The Keep a Close Circle.
Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.
Age by decade | Average net worth | Median net worth |
---|---|---|
40s | $713,796 | $126,881 |
50s | $1,310,775 | $292,085 |
60s | $1,634,724 | $454,489 |
70s | $1,588,886 | $378,018 |
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
Per the Federal Reserve about 6% of households have over $2,000,000 in wealth in 2020. Only 9% of Americans make over $100,000/yr. so, it is a relatively small percentage. As for savings, for those over 60, if they have been frugal and saved, they may have over a million dollars.
By the Census data, it means that if you earn between $50,000 and $150,000 a year, you are considered middle class.
Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131. Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.
Key Takeaways. Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022.
Countries | Region | Wealth (USD) |
---|---|---|
🇱🇺 Luxembourg | Europe | $10,832,000 |
🇨🇭 Switzerland | Europe | $8,509,000 |
🇺🇸 U.S. | N. America | $5,813,000 |
🇸🇬 Singapore | Asia | $5,227,000 |
Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
What is considered wealthy in retirement?
$1 million, $5 million, $10 million
However, if you have $1m, are retired and are living an expensive lifestyle, you might go from wealthy to poor in a relatively short period of time. The Schwab survey found that overall, Americans say they need: $1.9 million to be wealthy in 2021 (down from $2.6 million in 2020)
Types of High-Net-Worth Individuals (HNWIs)
An investor with less than $1 million but more than $100,000 is considered to be a sub-HNWI. The upper end of HNWI is around $5 million, at which point the client is referred to as a very-HNWI. More than $30 million in wealth classifies a person as an ultra-HNWI.
$2 million is far above the average retirement savings in the US. $2 million should afford you to enjoy a comfortable and happy retirement. If you choose to retire at 50, a retirement savings fund of $2 million would provide you with $50,000 annually.
The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances. Taken on their own, those numbers aren't incredibly helpful. There are a variety of decent retirement savings benchmarks out there, but how much money other people have isn't one of them.
Senior Contributor. I write actionable interview, career and salary advice. Americans need at least $2.2 million in assets to be considered rich, according to Charles Schwab's 2023 Modern Wealth Survey.
References
- https://www.synchronybank.com/blog/median-retirement-savings-by-age/
- https://www.usnews.com/banking/articles/the-average-savings-account-balance
- https://finance.yahoo.com/news/6-ways-tell-middle-class-174814986.html
- https://smartasset.com/retirement/cover-4k-monthly-60-with-800k-in-savings
- https://blog.moneyfarm.com/en/pensions/retire-at-60/
- https://www.newsweek.com/americans-have-burned-through-their-savings-1862843
- https://www.fool.com/the-ascent/personal-finance/articles/does-your-income-make-you-upper-class-middle-class-or-lower-class/
- https://www.cnbc.com/2024/01/24/how-much-money-americans-have-in-savings.html
- https://www.investopedia.com/terms/h/hnwi.asp
- https://www.bankatfirstnational.com/wallet-wise-blog/august-2022/how-much-savings-should-i-have/
- https://www.lendingclub.com/resource-center/personal-savings/understanding-average-americans-savings-by-age
- https://finance.yahoo.com/news/25-best-cities-where-retire-051546942.html
- https://www.nasdaq.com/articles/most-millennials-have-less-than-$100k-in-retirement-savings:-should-you-be-concerned?time=1694620818
- https://www.bankrate.com/banking/savings/high-net-worth-individual/
- https://finance.yahoo.com/news/20-000-good-amount-savings-160036732.html
- https://www.quora.com/How-much-cash-can-be-deposited-into-a-savings-bank-account-per-year-without-being-taxed-by-the-Internal-Revenue-Service-IRS
- https://www.bankrate.com/banking/savings/emergency-savings-report/
- https://www.troweprice.com/content/dam/iinvestor/planning-and-research/t-rowe-price-insights/retirement-and-planning/pdfs/how-much-cash-should-retirees-have-on-hand.pdf
- https://finance.yahoo.com/news/rich-heres-americans-think-considered-182847861.html
- https://www.nerdwallet.com/article/banking/how-much-money-in-checking-and-savings
- https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
- https://finance.yahoo.com/news/average-social-security-benefit-70-105100948.html
- https://finance.yahoo.com/news/nearly-quarter-americans-don-t-131923265.html
- https://www.fool.com/the-ascent/research/average-savings-account-balance/
- https://www.quora.com/What-percentage-of-the-US-population-has-2-million-dollars
- https://www.unbiased.com/discover/retirement/retire-on-900k
- https://usafacts.org/data-projects/retirement-savings
- https://finance.yahoo.com/news/know-im-rich-140000452.html
- https://finance.yahoo.com/news/many-americans-retire-million-dollars-140019814.html
- https://www.fool.com/retirement/how-much-saved-by-25/
- https://www.fool.com/the-ascent/personal-finance/articles/do-you-need-100000-in-savings-to-be-financially-healthy-51-of-americans-say-yes/
- https://www.clearviewfcu.org/Resources/Learn/Blog/How-Much-Money-Should-I-Keep-in-My-Checking-Accoun
- https://finance.yahoo.com/personal-finance/how-much-money-saved-by-40-155018155.html
- https://www.quora.com/How-many-people-in-the-US-have-a-net-worth-of-over-1-million-How-does-that-compare-to-the-rest-of-the-world
- https://www.forbes.com/sites/andrewrosen/2023/03/02/how-your-retirement-savings-compare-to-the-national-average/
- https://www.forbes.com/advisor/banking/checking-vs-savings-accounts/
- https://www.forbes.com/advisor/banking/how-much-cash-should-you-keep-in-the-bank/
- https://www.cnn.com/cnn-underscored/money/average-401k-balance-by-age
- https://finance.yahoo.com/news/much-savings-70-140006145.html
- https://smartasset.com/retirement/average-retirement-savings-are-you-normal
- https://www.businessinsider.com/personal-finance/net-worth-to-be-wealthy-at-every-age-2019-8
- https://finance.yahoo.com/news/average-social-security-benefit-every-120016509.html
- https://www.sofi.com/learn/content/is-40000-a-good-salary/
- https://finance.yahoo.com/news/tell-doing-better-retirement-savings-140015071.html
- https://www.cbsnews.com/news/wealth-1-percent-5-8-million-knight-frank-report/
- https://www.bankrate.com/banking/savings/savings-account-average-balance/
- https://www.cnbc.com/select/can-you-have-too-much-in-savings/
- https://www.nerdwallet.com/article/banking/is-my-money-safe-in-a-bank
- https://www.fool.com/the-ascent/buying-stocks/articles/im-40-with-40000-in-retirement-savings-am-i-doing-all-right/
- https://www.fool.com/the-ascent/banks/articles/heres-why-a-20000-emergency-fund-might-fail-you/
- https://www.aol.com/finance/net-worth-retirement-143924554.html
- https://www.washingtonpost.com/business/interactive/2024/are-you-rich-american-wealth-net-worth/
- https://www.nerdwallet.com/article/banking/how-much-should-i-have-in-savings
- https://interactive-wealth.com/how-long-will-500k-last-in-retirement/
- https://www.forbes.com/advisor/banking/how-to-save-1000-a-month/
- https://finance.yahoo.com/news/40-awesome-places-retire-3-135503265.html
- https://www.ally.com/stories/save/savings-by-age-how-much-to-save-in-your-20s-30s-40s-and-beyond/
- https://www.nerdwallet.com/article/investing/the-average-retirement-savings-by-age-and-why-you-need-more
- https://money.usnews.com/money/personal-finance/articles/what-is-the-average-american-net-worth-by-age
- https://www.investopedia.com/articles/retirement/080516/retire-45-500k-it-possible.asp
- https://finance.yahoo.com/news/many-americans-plan-retire-1-160021367.html
- https://foolwealth.com/insights/are-you-in-the-top-3-of-retirees
- https://www.newretirement.com/retirement/are-you-wealthy-how-to-define-wealth/
- https://finance.yahoo.com/news/8-key-signs-ve-made-170047090.html
- https://www.visualcapitalist.com/wealth-needed-to-join-the-top-1-by-country/
- https://finance.yahoo.com/news/long-4-million-last-retirement-130042732.html
- https://www.cnn.com/cnn-underscored/money/average-american-savings
- https://finance.yahoo.com/news/income-considered-middle-class-2024-160007340.html
- https://www.fool.com/retirement/how-much-do-i-need/
- https://smartasset.com/career/what-should-my-net-worth-be-at-35
- https://www.unbiased.com/discover/retirement/can-you-retire-on-200k
- https://www.nasdaq.com/articles/7-things-you-must-do-when-your-savings-reach-%2425000
- https://www.joshuakennon.com/1821745-households-in-the-united-states-have-investment-portfolios-worth-3000000-or-more/
- https://money.usnews.com/money/retirement/articles/what-is-a-good-monthly-retirement-income
- https://www.nasdaq.com/articles/how-can-you-tell-if-someone-is-a-millionaire
- https://www.bankrate.com/retirement/average-monthly-social-security-check/
- https://en.wikipedia.org/wiki/American_upper_class
- https://www.nasdaq.com/articles/most-millennials-have-less-than-$100k-in-retirement-savings:-should-you-be-concerned
- https://www.pewresearch.org/2023/12/04/the-assets-households-own-and-the-debts-they-carry/
- https://www.fool.com/research/average-retirement-savings/
- https://www.unbiased.com/discover/retirement/can-you-retire-on-500k
- https://finance.yahoo.com/news/wealthy-net-worth-considered-poor-190014440.html
- https://finance.yahoo.com/news/ask-advisor-im-49-500k-130746902.html
- https://www.forbes.com/advisor/banking/savings/how-much-should-i-have-saved-by-30/
- https://time.com/personal-finance/article/how-much-cash-to-keep-in-checking-account/
- https://finance.yahoo.com/news/much-interest-earn-1-million-150000229.html
- https://www.westernsouthern.com/personal-finance/how-much-money-should-you-have-saved-by-25
- https://www.fool.com/the-ascent/banks/articles/this-is-how-much-money-you-can-make-with-20k-in-a-high-yield-savings-account/
- https://www.forbes.com/advisor/banking/checking/average-checking-account-balance/
- https://finance.yahoo.com/news/income-level-considered-rich-140003986.html
- https://www.empower.com/the-currency/life/average-net-worth-by-age
- https://fortune.com/2024/02/01/emergency-1000-expense-most-americans-broke-debt-bankrate/
- https://www.forbes.com/sites/jackkelly/2023/06/16/you-need-more-than-22-million-to-be-considered-rich-in-the-us-but-some-say-well-being-is-the-most-important-measure-of-wealth-study-finds/
- https://www.kiplinger.com/personal-finance/605075/are-you-rich
- https://www.thrivent.com/insights/retirement-planning/how-to-retire-with-no-savings
- https://www.cnbc.com/select/tips-for-getting-your-first-100k/
- https://finance.yahoo.com/news/4-most-popular-banks-millionaires-150054420.html
- https://www.nasdaq.com/articles/how-do-your-retirement-savings-compare-to-the-average-americans
- https://finance.yahoo.com/news/comfortably-retire-100-000-know-110152178.html
- https://www.unbiased.com/discover/retirement/can-you-retire-on-2-million
- https://www.fool.com/retirement/how-much-money-should-i-have-saved-by-40/
- https://www.ellevest.com/magazine/personal-finance/how-much-keep-cash
- https://www.fool.com/the-ascent/buying-stocks/articles/im-retiring-with-just-50000-in-savings-am-i-doomed/
- https://finance.yahoo.com/news/retirement-planning-much-average-person-000026006.html
- https://www.investopedia.com/articles/personal-finance/040915/how-much-cash-should-i-keep-bank.asp
- https://www.fool.com/retirement/how-much-saved-by-30/