Only 33% Millionaires In US View Themselves As 'Truly Wealthy': Report

There might be an extraordinary increase in wealth across the US, but financial insecurity is still prevalent, even among millionaires. A recent survey by Edelman Financial Engines found that just 33 per cent of millionaires — those with assets ranging from $500,000 to $3 million — view themselves as ‘truly wealthy’. Additionally, many believe that even having $3 million doesn’t guarantee financial security, underscoring the widening gap between wealth accumulation and financial assurance in the country.

The survey included over 3,000 adults in the age groups of 30 and above, conducted from June 12 to July 3, with 1,500 participants being affluent Americans with household assets of $500,000 to $3 million, reported CNBC.

Jean Chatzky, a personal finance expert and CEO of HerMoney.com, who collaborated with Edelman Financial Engines on the report, said, “Homeownership doesn’t feel like wealth. Homes are assets we use daily, unlike the balance in your retirement or savings accounts.” It is worth mentioning that the persistent inflation has driven up living costs, putting pressure on household budgets, and reducing disposable income.

The Edelman Financial Engines survey also revealed that around 65 per cent of respondents believe they would need $1 million in savings to feel wealthy. Meanwhile, the other 28 per cent estimate that $2 million or more is necessary, and 19 per cent believe $5 million or more is required. Among millionaires, 68 per cent feel that $3 million is essential to feel wealthy, with 40 per cent needing at least $5 million. Regarding salaries, 58 per cent stated they would require an average income of $100,000 to comfortably meet their daily expenses. A quarter of participants even indicated that they would need a salary exceeding $200,000 for financial security. Given the numbers, experts emphasise that financial stability is influenced by prudent habits.

On the contrary, the total net worth of the top 1 per cent — those with more than $11 million — saw it increase by nearly $2 trillion and reach an unprecedented $46.2 trillion in the first quarter of 2024, CNBC reported, quoting data from the Federal Reserve.