Yahoo Finance
In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
Whatever the definition might be, Americans think the sweet spot is about $778,000 in net worth, according to Charles Schwab's annual Modern Wealth Survey, which surveyed 1,000 Americans ages 21 to 74 in March 2024. That changes depending on where you live, however.
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.
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.
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 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.
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).
The final multiple — 10 to 12 times your annual income at retirement age. If you plan to retire at 67, for instance, and your income is $150,000 per year, then you should have between $1.5 and $1.8 million set aside for retirement.
Other sources define the upper-middle class as anyone making a lot of money but that hasn't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
In terms of generations, Baby Boomers believe the wealth threshold is $2.8 million, whereas Gen-X places it at $2.7 million. Notably, Millennials have a lower threshold of $2.2 million, and Gen-Z considers $1.2 million to be the lowest threshold for wealth.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
All of your retirement accounts are included as assets in your net worth calculation. That includes 401(k)s, IRAs and taxable savings accounts.
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. While this may seem like a substantial sum, it pales compared to the ultra-affluent's stratospheric wealth.
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.
Retiring in comfort at 45 with $1.5 million is likely doable as long as your retirement living expenses are no more than average, your investments generate a typical return and you have good health. Challenges include waiting 17 years for Social Security and 20 years for Medicare.
Since the upper class typically includes the top 20%, a reasonable estimate for their median retirement savings is between $400,000 and $500,000. While exact numbers aren't available for the full group, their savings are far above the national medians: Median retirement savings for all U.S. households: $87,000.
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. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
Should Your Net Worth Calculation Include Your Car? When calculating your net worth, subtract your liabilities from your assets. Since your car is considered a depreciating asset, it should be included in the calculation using its current market value.
Your home is likely your most valuable asset, and the value that you assign to it will have a great impact on your net worth calculation. A qualified real estate professional can give you an estimate of your home's value, or you can research online real estate aggregators such as Trulia or Zillow.
According to Schwab's 2024 Modern Wealth Survey, Americans said that it takes an average net worth of $2.5 million to qualify a person as being wealthy, a bit of an uptick from $2.2 million in the surveys from 2022 and 2023.
The average millionaire in the United States is actually 61 years old.
According to Kiplinger, by 2025, entering the top 2% of America's wealth will require a net worth of approximately $2.7 million, marking the threshold for elite economic status. Last year, the Schwab Modern Wealth Survey revealed Americans believe it takes $2.2 million to feel wealthy.