Here’s how much money it takes to be considered wealthy in 13 major U.S. cities (2024)

FAQs

Here’s how much money it takes to be considered wealthy in 13 major U.S. cities? ›

According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy​​​​. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia​​.

According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy​​​​. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia​​.

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

$4 million is a nest egg many can only dream of, and it should last you a long time, especially if you're somewhat careful about how you save and spend. With this much money to fund you as a retiree, you could even explore early retirement options from about age 30 and find them entirely possible.

In 2020, according to Pew Research Center analysis, the median for upper income households was around $220,000 and the median for middle income households was slightly above $90,000.

Americans need at least $2.2 million in assets to be considered rich, according to Charles Schwab's 2023 Modern Wealth Survey.

Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.

One of the first signs that you're truly rich is when your passive income or savings can comfortably cover your lifestyle expenses without the need for active work, according to Michael Kojonen, founder and owner of Principal Preservation Services LLC.

But while everyone in this group is rich, it does not mean they are wealthy. To be considered wealthy, your assets must be more substantial than your liabilities, with them generating an income large enough to cover your fixed expenses (such as rent or mortgage payments, car payments and insurance premiums).

Does net worth include home? ›

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).

Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900. These figures illustrate a dramatic wealth gradient in the U.S., indicating a substantial increase in net worth needed to move from the top 10% to the top 2%.

For 2024, based on the average of the Federal Reserve's data and Knight Frank's data, the top one percent net worth in America begins at about $9.7 million. If you prefer, round up the figure up to $10 million, the ideal net worth to retire with according to thousands of FS readers.

Now, 4% of $4 million is $160,000, so as long as you expect your retirement to last for about 30 years and that amount sounds like enough-or more than enough-for you, you're in a good place.

The average age at which most people retire is 62, according to a 2021 Gallup Poll. But if you have $4 million in savings, it's entirely possible to retire by age 55. Retiring early offers a lot of advantages.

According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

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.

Among the 47 million households headed by someone age 60 or older, 7% had household investable assets of at least $2 million, Drinkwater said. Only 6% of the 89 million households in the U.S. headed by someone 40 to 85 years old has that amount, Drinkwater said.