Americans now view this figure as the benchmark for being wealthy
The average net worth that Americans feel is needed to qualify as wealthy has surprisingly declined, compared to last year, though it is still an eye-popping figure, Charles Schwab found.
The financial services company said in the latest edition of its "Modern Wealth Survey" that Americans now view $2.3 million as the benchmark for counting as wealthy, pointing to what they see as a worsening economy.
That marked a $200,000 decrease from 2024, when Americans said the net worth required to be classified as wealthy averaged $2.5 million, according to the survey.
The "threshold" they have cited for being deemed wealthy has been above $2 million since 2022.
Meanwhile, Americans surveyed for Charles Schwab’s yearly "Modern Wealthy Survey" reported thinking an average net worth of $839,000 was necessary for being "financially comfortable," the company found.
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The average that Americans felt was needed to be "financially comfortable" came in at $778,000 last year, meaning the amount has gone up year-over-year.
How big of a net worth Americans typically thought was necessary to be wealthy and financially comfortable varied among the different generations, the survey found.
For Baby Boomers, the average net worth for being rich was $2.8 million, higher than the other three generations, per Charles Schwab.
The report said both Generation X and Millennials felt a $2.1 million net worth made someone wealthy, while Generation Z pegged the necessary fortune much lower, at $1.7 million.
When it came to financial comfort, Baby Boomers once again put forward the highest average net worth: $943,000. Behind them were Millennials, at $847,000, and Gen X, at $783,000, the survey showed.
The average net worth that was needed to be "financially comfortable" among Gen Z was just $329,000.
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Overall, 63% of those surveyed reported that it "feels like it takes more money to be wealthy today when compared with last year," Charles Schwab said. For 73% who felt that way, they cited inflation.
Inflation measured by the Consumer Price Index in May posted a 0.1% increase from the prior month while being 2.4% higher than a year ago, the Bureau of Labor Statistics reported last month.
Many – 62% – of respondents that said they thought "more money" was needed to be rich pointed to the economy. Taxes and higher interest rates, meanwhile, were the reasons cited by over four in ten for that perception, according to the survey.
The range of the Federal Reserve’s benchmark interest rate is currently 4.24% to 4.5%.
About 35% of Americans indicated they felt they were "wealthy now" or "on track to be wealthy," with 11% reporting the former and 24% saying the latter, according to Charles Schwab.
Gen Z had the rosiest views on being "wealthy or on track" to reaching that status, at 43%. A close share of Millennials – 42% – reported those sentiments, the survey found.
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Charles Schwab also said those "who are saving, investing, and have a financial plan are more optimistic about their wealth status or ability to reach wealth."
Happiness and funds stood out as the biggest factors in how Americans define wealth, according to the survey. They were cited by 45% and 44%, respectively.
That median wealth per U.S. adult was $124,041 in 2024, according to a separate report released last month by UBS.
The total number of millionaires in America hit 23.8 million last year, marking a 1.5% increase from the prior year, that report said.