To be in the top 1% of wealth in the U.S., a minimum net worth of roughly $5.8 million to $13.7 million is required as of early 2025. This threshold varies depending on whether it's measuring total household net worth (including home equity) or liquid assets, with recent estimates placing the average top 1% household wealth at over $35 million.
In some areas, those in the top 1% must make over $1 million per year, while in others, the threshold is lower. Both the earnings and wealth of top earners have increased in recent decades.
You need to make at least $731,492 to be considered a top 1% earner in the U.S., according to data from SmartAsset, which is based on 2022 IRS data for individual tax filers adjusted to June 2025 (1).
To be in the top 1% in the U.S., a household generally needs a net worth of around $11.6 million to $13.7 million, though this threshold fluctuates with market conditions and can vary significantly by age and location, with some reports suggesting higher figures like $21.7 million or even lower figures for certain states. This figure represents total assets (homes, investments, savings) minus debts and provides a better picture of long-term financial standing than income alone.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
Only a small fraction of Americans, around 1.8% of U.S. households, have $2 million or more saved in retirement accounts, according to analyses of Federal Reserve data by organizations like the Employee Benefit Research Institute (EBRI). This puts them in a very elite group, as most people fall far short of this milestone, with far fewer reaching $3 million (around 0.8%).
While the average income for the top 1% of earners is $500,000 annually, the threshold income is much lower at $315,911 annually. Those who are considered to be part of the top 1% are also considered to be upper class. There are quite a few career paths in Canada that can lead you to make an income of those in the 1%.
Average net worth at age 72
According to Federal Reserve data, households led by someone between the ages of 70 and 74 have an average net worth of about $1.7 million to $1.8 million. This is the mean figure, and it's heavily skewed by very wealthy households.
So, what's considered rich? According to the Federal Reserve's triennial data, the top 10% of households have a net worth starting at $1.9 million. The top 1% households exceed $13 million.
While just 0.79 percent of jobs in the country paid more than $500,000 per year, that's well more than 1 million positions. Per the Quarterly Census of Employment and Wages, average annual employment in the United States during 2023 was 153,140,899, or 131,289,681 if only the private sector is included.
Research shows that less than 1% of households have $3 million or more in retirement savings. While this amount is uncommon, those who consistently invest, save diligently and manage their spending can build significant retirement assets over time.
Back in late 2024, Charles Schwab released their Modern Wealth Survey, which found that Americans think you need a whopping $2.5 million in net worth to be considered wealthy or upper class.
Based on this data, approximately less than 10% of Canadians aged 55 to 64 have $1,000,000 or more saved up to carry them into retirement. However, there are ways to improve your odds of getting to $1-million-plus in retirement savings, but it will take work.
To be considered among Canada's one per cent of earners, you'd have to make at least $293,800 in 2023, according to Statistics Canada. To be in the 0.1 per cent group, the cost of entry was $930,100. Within that, Canadians earning more than $3,487,600 could call themselves 0.01 per cent earners.
To be in the top 1% in the U.S., a household generally needs a net worth of around $11.6 million to $13.7 million, though this threshold fluctuates with market conditions and can vary significantly by age and location, with some reports suggesting higher figures like $21.7 million or even lower figures for certain states. This figure represents total assets (homes, investments, savings) minus debts and provides a better picture of long-term financial standing than income alone.
For a 70-year-old, average retirement savings vary significantly by source, but generally fall between $250,000 and over $600,000 (mean/average), while the median (half have less) is much lower, around $100,000 to $200,000, highlighting a wide gap due to high earners skewing averages. Key figures show the mean for ages 65-74 around $609,000, but the median for that group is closer to $200,000.
One in five Americans over the age of 50 have no retirement savings, according to a survey by the AARP. And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
Empower Personal DashboardTM data shows 9.1% of people fall into the category of 401(k) millionaire as of September 30, 2025, having accumulated at least $1 million in retirement savings in employer-sponsored plans and individually controlled IRA savings and investment accounts.
Yes, you can live off the interest/returns from $500,000, but it depends heavily on your lifestyle and expenses, with the common 4% rule suggesting about $20,000 annually, which may require a frugal lifestyle, relocation, or significant Social Security income to supplement. With smart investing (e.g., balanced stock/bond mix) and minimal spending, it's feasible for many, but living in a high-cost area or with high expenses would make it difficult.