Americans Now Believe $2.3 Million Is Needed To Be Wealthy 21% Rise Since 2021

Americans now believe it takes an average of $2.3 million to be considered wealthy, reflecting a 21% rise since 2021. This shift is largely due to inflation and soaring costs, which have altered perceptions of what constitutes wealth. The definition of wealth varies by generation, but most agree it encompasses not just financial security but also well-being and quality of life.

According to a report released by a financial services firm, the average response for what it takes to be considered “financially comfortable” was $839,000. The survey, conducted between April 24 and May 23, included 2,200 adults aged 21 to 75, providing a broad generational perspective. While the reported $2.3 million was a slight drop from last year’s figure of $2.5 million, it remains 21% higher than the 2021 figure of $1.9 million.

Respondents indicated that the bar to achieve monetary wealth feels as if it’s increasing, with 63% stating it feels like it takes more money to be wealthy today compared to last year. This sentiment is attributed to the impacts of inflation, a worsening economy, and higher taxes. Financial advisors note that many middle-class Americans are considered millionaires when factoring in all assets, including their homes, but their investable assets are typically less than $1 million. This discrepancy may explain why the average individual considers $2.3 million to be wealthy, as it may seem out of reach.

Experts emphasize that being considered wealthy does not necessarily equate to opulence in all life choices. The $2.3 million figure represents security rather than luxury. It encompasses having a house, retiring well, spending time with family, and reducing anxiety. This perspective is shared across generations, with each defining wealth differently based on their experiences and priorities.

For instance, Gen Z tends to set lower thresholds for what it takes to be wealthy and financially comfortable—$1.7 million and $329,000, respectively. Millennials and Gen Xers say it takes $2.1 million to be wealthy, while baby boomers set the bar at $2.8 million. Earlier generations like baby boomers often frame wealth in terms of security, focusing on property, pension, and assets that get passed down. Younger generations, on the other hand, consider experiences, freedom from debt, and lifestyle decisions as key components of wealth.

Younger generations may have a harder time acquiring large assets like a home due to comparatively high mortgage rates and home prices. This financial strain contributes to their pessimism about home ownership, which historically was the most common way for Americans to build wealth. Despite these differences, experts agree that true wealth encompasses more than just financial assets. It includes happiness, physical health, mental health, quality of relationships, accomplishments, amount of free time, and material possessions.

True wealth is about using one's assets to free up time to benefit those around them. The happiest people tend to be those with a greater purpose in life, rather than those who define wealth solely based on dollars. This holistic view of wealth underscores the importance of well-being and quality of life in addition to financial security.