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.<\/p>\n
The financial services company said in the latest edition of its “Modern Wealth Survey<\/u><\/a>” that Americans now view $2.3 million as the benchmark for counting as wealthy, pointing to what they see as a worsening economy<\/u><\/a>.\u00a0<\/p>\n 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.<\/p>\n The “threshold” they have cited for being deemed wealthy has been above $2 million since 2022.<\/p>\n Meanwhile, Americans surveyed for Charles Schwab\u2019s yearly “Modern Wealthy Survey” reported thinking an average net worth of $839,000 was necessary for being “financially comfortable,” the company found.<\/p>\n GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/strong><\/a><\/p>\n The average that Americans felt was needed to be “financially comfortable<\/a>” came in at $778,000 last year, meaning the amount has gone up year-over-year.<\/p>\n 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.\u00a0<\/p>\n For Baby Boomers, the average net worth for being rich was $2.8 million, higher than the other three generations, per Charles Schwab.\u00a0<\/p>\n 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.<\/p>\n 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.<\/p>\n The average net worth that was needed to be “financially comfortable” among Gen Z was just $329,000.<\/p>\n RETIREMENT ACCOUNT BALANCES DIP IN 1ST QUARTER, BUT SAVERS KEEP CONTRIBUTING<\/strong><\/a><\/p>\n 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.<\/p>\n 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.<\/p>\n Many \u2013 62% \u2013 of respondents that said they thought “more money” was needed to be rich pointed to the economy<\/a>. Taxes and higher interest rates, meanwhile, were the reasons cited by over four in ten for that perception, according to the survey.<\/p>\n The range of the Federal Reserve\u2019s benchmark interest rate is currently 4.24% to 4.5%.<\/p>\n About 35% of Americans indicated they felt they were “wealthy now” or “on track to be wealthy,” with 11% reporting the former and\u00a024% saying the latter, according to Charles Schwab.<\/p>\n Gen Z had the rosiest views on being “wealthy or on track” to reaching that status, at 43%. A close share of Millennials \u2013 42% \u2013 reported those sentiments, the survey found.<\/p>\n CLICK HERE TO READ MORE ON FOX BUSINESS<\/strong><\/a><\/p>\n