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Becoming a millionaire was once considered a clear sign of financial success. Many view it as a milestone that promises comfort, security and even a sense of arrival. But for many Americans today, crossing the seven-figure net-worth mark doesn’t necessarily translate into feeling wealthy.
A growing body of research shows that many millionaires still worry about retirement, healthcare costs and whether their money will last. At the same time, Americans’ definition of wealth has shifted upward as inflation, longer life expectancies and rising housing costs reshape financial expectations.
For those navigating similar concerns, the disconnect between net worth and financial confidence raises an important question: What does it actually take to feel financially secure?
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Why millionaire status no longer guarantees financial confidence
For decades, accumulating $1 million in assets was considered a gold standard for financial success. Today, that benchmark often feels outdated.
According to recent survey data by Northwestern Mutual, only a minority of U.S. millionaires consider themselves wealthy. Many say they feel “financially comfortable” at best, while others report ongoing anxiety about the future.
Several factors are driving this shift:
- Inflation has eroded purchasing power. A million dollars simply doesn’t stretch as far as it once did, especially after years of elevated prices for essentials.
- Housing costs have surged. In many regions, a large portion of net worth is tied up in home equity, which doesn’t necessarily provide spendable cash.
- Longer lifespans require more savings. Retirees may need to fund 25 to 30 years of living expenses, increasing pressure to preserve assets.
These modern realities mean that reaching millionaire status doesn’t automatically translate into peace of mind.
How Americans define wealth today
Americans’ definition of wealth has shifted sharply upward, and it now goes far beyond simply having $1 million.
According to a Charles Schwab survey, Americans say it takes an average net worth of about $2.3 million to be considered wealthy today. That figure has stayed elevated in recent years and reflects a broader trend: the financial bar for feeling wealthy continues to rise alongside living costs and economic uncertainty.
Survey respondents also said it takes roughly $839,000 in net worth to feel financially comfortable, highlighting a wide gap between comfort and perceived wealth.
Perceptions also vary significantly by generation and personal circumstances:
- Older Americans tend to set higher wealth thresholds than younger ones, reflecting concerns about retirement and healthcare costs.
- Many respondents say rising prices, taxes and interest rates have made wealth feel harder to achieve than in the past.
- Definitions of wealth increasingly include nonfinancial factors such as health, relationships, life experiences and free time and not just net worth.
Together, these findings suggest that wealth today is as much about stability and quality of life as it is about reaching a specific dollar amount. As expectations rise, even high-net-worth households may feel they are still working toward, rather than living in, true financial security.
Net worth vs. financial security: What matters more
One of the biggest reasons millionaires may not feel wealthy is that net worth alone doesn’t equal financial security.
A household could have a $1 million net worth but still feel financially strained if most assets are tied up in illiquid holdings like:
- Retirement accounts that can’t be accessed without penalties
- Real estate that generates little cash flow
- Business equity that fluctuates with market conditions
On the flip side, people often feel more secure when they have:
- Reliable income streams
- Adequate emergency savings
- Low or manageable debt
- Clear retirement projections
Lifestyle inflation and the millionaire mindset
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Another reason many millionaires don’t feel wealthy is lifestyle inflation; the tendency for spending to rise alongside income and net worth.
As earnings grow, households may upgrade:
- Homes and neighborhoods
- Vacations and travel
- Private education or extracurriculars
- Dining and entertainment
These upgrades can quietly increase fixed expenses and create ongoing financial pressure. Even high earners can feel stretched if their spending commitments grow just as quickly as their assets.
Psychological factors also play a role. Behavioral finance research shows that people often compare themselves to peers with higher incomes or net worth, which can diminish feelings of financial satisfaction even when they are objectively well off.
What actually helps people feel financially secure
While net worth can be an important milestone, true financial confidence tends to come from stability and flexibility rather than a specific number.
This includes having:
- Predictable retirement income: Knowing that Social Security, pensions or investment income will reliably cover core expenses can significantly reduce anxiety.
- Strong emergency reserves: Having three to six months of expenses in accessible savings provides a buffer against unexpected setbacks.
- Adequate insurance coverage: Health, disability, home and life insurance can protect wealth from being derailed by a major event.
- Financial flexibility: The ability to reduce work hours, change careers or handle large expenses without financial strain often contributes more to confidence than reaching a certain net worth.
- Clear priorities and goals: People who define what money is meant to support, whether that’s travel, family support or early retirement, often feel more satisfied than those chasing arbitrary wealth targets.
Realistic wealth benchmarks by age
Comparing your finances with national benchmarks can provide a useful perspective, as long as those numbers are viewed as guideposts rather than strict targets. Net worth varies widely by age, income and location. According to the Federal Reserve’s Survey of Consumer Finances, net worth generally rises with age but differs sharply between median households and top earners.
Using the latest available SCF data:
- Under 35: Median net worth is roughly $39,000, though higher-earning households may hold several hundred thousand dollars.
- Ages 35 – 44: Median net worth rises to about $135,000, with top households surpassing $1 million.
- Ages 45 – 54: Median net worth approaches $247,000, while top earners often exceed $1 million.
- Ages 55 – 64: Median net worth climbs to around $364,000 as retirement savings peak.
- 65 and older: Median net worth often ranges from about $335,000 to $410,000, though top-quartile households hold significantly more
Rather than focusing solely on net worth, financial experts typically recommend tracking retirement readiness using savings and income benchmarks.
This often means contributing consistently to tax-advantaged retirement accounts such as 401(k)s and IRAs and aiming to save one times your salary by age 30, three times by 40, and six to eight times by your early 60s.
So that you’re not creating unnecessary pressure that can make financial success feel out of reach, ask yourself some of these questions instead as you track your progress:
- Am I consistently saving and investing each year?
- Is my net worth trending upward over time?
- Do I have a clear plan for retirement income and major expenses?
- Am I reducing high-interest debt and building liquidity?
How to build financial confidence even if you are not a millionaire
The good news is that feeling financially secure doesn’t require reaching a seven-figure net worth. Many households can build confidence through practical steps that improve stability and clarity.
Consider focusing on:
- Strengthening emergency savings to reduce financial stress
- Increasing retirement contributions when possible
- Diversifying income sources through side work or investments
- Reviewing insurance and risk management
- Creating a long-term financial plan aligned with personal goals
For some households, working with a financial adviser can help clarify priorities and build a roadmap for long-term security.
Millionaire status may still represent a significant financial milestone, but it no longer guarantees peace of mind. Rising costs, longer lifespans and shifting expectations have changed what it means to feel wealthy.
Ultimately, financial security is less about hitting a specific number and more about having stability, flexibility and confidence in your ability to support the life you want. For many Americans (millionaire or not), those factors matter far more than the size of a portfolio.
