According to recent data from the Federal Reserve, a net worth of at least $3,795,000 places you among the coveted top 5% of U.S. households.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Interestingly, the 90th percentile is pretty flat, around $2.5M to $3M, from one's early 50s to one's 80s. The 95th is slightly less flat, with a peak slightly under $7M in one's late 60s; while the 99th percentile rises sharply with age until peaking over $22M in one's late 60s, from which point it mostly drops.
According to data based on estimates from the Federal Reserve, having a net worth of $4 million places you in the top 3% of American households. That's an elite group, for sure. Leigh Baldwin & Co. Advisory Services reports about 4,473,836 U.S. households have amassed $4 million or more in wealth.
A choropleth map of the U.S. showing the adjusted gross income needed to be in the top 1% of earners by state, using IRS tax year 2021 data adjusted to October 2024 dollars. Washington, D.C. leads at $1,222,791.28, while West Virginia trails at $425,816.40. The national figure is $797,760.07.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
Key Takeaways. The lower class has a median net worth of about $3,500, while the upper class has one of about $7.81 million. The middle class has a median net worth that ranges from $93,300 to $1.04 million.
What is a good net worth for my age? People in their 20s and 30s should target net worth of $100,000 to $300,000. A net worth of $1 million or more should be the goal in your 40s and beyond. A seven-figure net worth is usually necessary to ensure a comfortable retirement.
“Somewhere around 4,473,836 households have $4 million or more in wealth, while around 3,592,054 have at least $5 million. Respectively, that is 3.48% and 2.79% of all households in America.”
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.
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The most recent data from the Fed's Survey of Consumer Finances comes from the end of 2022. If you wanted to be in the top 5% of households at that point, you would need a net worth of $3,795,000. As you might expect, though, you don't need as much to reach the top 5% of younger households.
Middle class is defined as income that is two-thirds to double the national median income, or $47,189 and $141,568. By that definition, $100,000 is considered middle class. Keep in mind that those figures are for the nation. Each state has a different range of numbers to be considered middle class.
According to the Federal Reserve's 2022 survey, approximately 18% of U.S. households had at least seven figures net worth. That's roughly 23.7 million millionaire households across the country.
Yahoo Finance
In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
That's not chump change, but it's also not the $5-$10 million range some financial gurus – like Suze Orman – insist you must live comfortably. If you're dreaming of $3 million or more, though, you're officially aiming for a financial VIP club that represents less than 1% of retirees.
In a recent NerdWallet survey, 57% of Americans said they were living paycheck to paycheck.