Americans say it takes US$2.5 million to be considered wealthy

HOME prices are higher. Stocks are higher. And so is the sum Americans think they need to feel rich.

Americans on average believe it takes a net worth of US$2.5 million to be considered wealthy in 2024, according to annual survey results released on Wednesday (Aug 20). That’s a 14 per cent jump from last year, when the Charles Schwab Modern Wealth survey found Americans thought it took US$2.2 million to be rich.

“The notion of wealth combines both numbers and emotions,” said Rob Williams, managing director of financial planning at Charles Schwab. “The jump from US$2.2 million to US$2.5 million demonstrates both sides –  the cost of living is rising, as are, it’s likely, most Americans’ more emotion-fuelled views of what it takes to be wealthy.”

The older someone is, the higher their definition of wealth in the survey. Baby boomers said being wealthy takes US$2.8 million, while millennials peg it at US$2.2 million. Overall, slightly more than one-in-five Americans said they were “on track” to be wealthy, and 10 per cent said they were wealthy already. 

When asked what average net worth you’d need to be considered “financially comfortable,” Americans said US$778,000 – a big drop from last year’s results and on par with 2022 results. As inflation remained hot in 2023, the number rose to US$1 million, the highest reading since the survey’s 2017 start. 

Members of Gen X, many of whom are now supporting children and ageing parents, cited the highest average net worth needed to be comfortable, at US$873,000. That’s 12 per cent higher than the answer from boomers, and 20 per cent above the estimate from millennials.The online survey by Logica Research reached a nationally representative sample of 1,000 Americans between ages 21 and 75 in March. BLOOMBERG