Middle-Class Millionaires? Here’s Why 91% Don’t Consider Themselves Rich
Written by
David Nadelle
Edited by
Cory Dudak
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The American dream of becoming a millionaire is more achievable than ever. According to Statista, more than 22.7 million Americans had a net worth of over $1 million in 2022. Moreover, even as inflation continues to cool, many things are still costly, making it harder to save and easier to spend.
However, a million dollars doesn’t go as far as it once did, and a recent study found it’s affecting most millionaires’ sense of self-wealth. According to research from Ameriprise Financial, 91% of U.S. millionaires don’t classify themselves as upper-class rich. The study also found that 60% and 31% of investors with $1 million or more surveyed consider themselves as “upper middle class” and “part of the middle class,” respectively.
A 2023 Chubb Wealth Report supports this thinking, noting that many affluent Americans don’t identify as wealthy and that achieving financial success is more challenging than ever. In its study, Chubb found that 68% of respondents, including many with investable assets of more than $10 million, don’t consider themselves rich.
First, it takes more to be considered wealthy now. The survey found that you need $2.2 million to “be wealthy” in 2023. But that’s not the only reason why people are rethinking its definition.
The COVID-19 pandemic is partly responsible for the altered definition of wealth. In fact, according to the most recent Charles Schwab Modern Wealth Survey, well-being has supplanted money as the leading measure of wealth for most adults today. When subjects were asked what being wealthy means to them, respondents overall mentioned their well-being (40%) more often than money (32%) and assets (26%).
Almost two-thirds (62%) of those surveyed by Schwab said that enjoying healthy relationships with their loved ones better describes what wealth means to them than having a lot of money. “Whether they know it or not, well-being is much more important,” said Brad Klontz, CFP and financial psychologist, to CNBC. “One of the risks we run is thinking a certain amount of money is going to bring us happiness, bring us peace, improve our lives, improve our relationships.”
Marcy Keckler, Senior Vice President of Financial Advice Strategy at Ameriprise, echoed this revised view of wealth. “There is no standard definition of what it means to be wealthy, but in general, investors associate it with having the means to live life on their terms,” said Keckler. “Whether that means having $1 million, $10 million, or any other figure, building wealth requires planning, prioritization, and taking steps to protect your future.”
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