- Americans now believe it takes an average of $2.3 million to be considered affluent. This represents a 21% increase from 2021, illustrating how inflation and escalating expenses have altered views on affluence. Although the understanding of affluence differs across age groups, the general consensus is that it encompasses not only financial assets but also a sense of security, contentment, and a high standard of living.
“If I had a million dollars … I’d be rich,” the Barenaked Ladies sang in their hit 1988 song.
TL;DR
- Americans now believe $2.3 million is needed to be affluent, a 21% increase since 2021.
- This perception is driven by inflation, escalating expenses, and a deteriorating economic climate.
- Affluence is defined beyond finances, including security, contentment, and a high standard of living.
- Generational differences exist, with Gen Z requiring less than Baby Boomers to feel wealthy.
Back then, a million dollars seemed substantial. However, with inflation and tariffs driving up the cost of nearly everything, that sum no longer appears as significant. Indeed, Americans now believe an average of $2.3 million is required to be deemed affluent, as indicated by a Charles Schwabreport.
A financial services company polled 2,200 individuals aged 21 to 75 from April 24th to May 23rd, ensuring input from a range of age groups. The typical figure provided for what constitutes being considered “financially comfortable” was $839,000.
Although the reported $2.3 million represented a minor decrease compared to last year's Modern Wealth Survey figure of $2.5 million, it remains 21% above the 2021 amount of $1.9 million.
Participants additionally indicated that the threshold for attaining financial prosperity seems to be rising, with 63% stating that it requires more funds to be considered wealthy now than in the previous year. They attributed this to the effects of inflation, a deteriorating economic climate, and elevated tax rates.
Brad Clark, who established and leads the financial advisory company Solomon Financial, stated that these feelings largely mirror what he encounters from his clientele. He informed Coins2Day, that a substantial quantity of millionaires exist in the U.S. When all possessions are accounted for, but this generally encompasses their residences, implying their readily investable funds are commonly under $1 million.
“With so many middle-class Americans being considered millionaires, it stands to reason that the average individual would consider $2.3 million to be wealthy, as it may seem out of reach,” Clark said.
However, specialists indicated that being perceived as affluent doesn't automatically translate to lavish decisions across the board.
The $2.3 million sum represents “not luxury for everyone, but security. It’s wanting to have a house, retire well, have family, and have one’s time,” William “Bill” London, an attorney and associate at Kimura London & White specializing in affluent households and persons in dissolution and inheritance matters, informed Coins2Day. “Affluence is not about excess, but about reducing anxiety.”
How affluence is perceived across various age groups
According to a survey conducted by Charles Schwab, when contrasted with other age groups, Gen Z generally establishes less demanding benchmarks for achieving wealth and financial ease, requiring $1.7 million and $329,000, respectively. In contrast, millennials and Gen Xers indicate that $2.1 million is needed for wealth, and baby boomers suggest $2.8 million.
This might be connected to how distinct age groups define affluence. Older cohorts, such as baby boomers, tend to characterize wealth by security, according to London, emphasizing real estate, retirement funds, and inherited possessions. In contrast, younger demographics are more inclined to view wealth through the lens of experiences, liberation from financial obligations, and choices regarding their way of life, he noted.
“More of my younger clients are more concerned about breathing space and time than they are about a big house or pricey assets,” London said. “Their definition of wealth is more about lifestyle than about acquisition.”
However, it's also possible that younger demographics struggle more to obtain substantial possessions, such as a residence, due to mortgage rates and property values that are relatively elevated.
“Millennials and Gen Z are justifiably pessimistic about the prospects of homeownership, which historically was the most common way for Americans to build wealth,” Markus Schneider, associate professor and chair of the economics department at University of Denver, told Coins2Day. “There are lots of reasons why millennials and Gen Z may feel less secure about the world than the boomers did when they were the same age, and that may also impact how they feel about their wealth.”
Even with generational disparities, authorities concur that wealth involves more than just financial assets, as highlighted in the Charles Schwab report. Common personal interpretations of affluence encompass contentment, bodily well-being, psychological health, the caliber of interpersonal connections, achievements, available leisure time, and tangible goods.
“You don’t have to look too far to find a study that shows how depressed ultrawealthy people often are. If you are defining wealth solely based on dollars, you likely will be disappointed when you achieve the number,” Clark said. “True wealth is being able to use your assets to free up your time to benefit those around you. The happiest people tend to be those with a greater purpose in life.”
A version of this story was published at Coins2Day.com on July 10, 2025.
