What it takes to be wealthy in America: $2.3 million, Charles Schwab says

A Charles Schwab survey of 2,200 U.S. adults finds the average American now thinks $2.3 million is required to be considered wealthy (up 21% since 2021 though slightly below last year’s $2.5 million), while people say $839,000 is needed to be “financially comfortable”; 63% feel the bar to wealth is rising due to inflation, a weakening economy and higher taxes. The survey reveals generational gaps—Gen Z sets the lowest thresholds ($1.7M wealthy, $329K comfortable), millennials and Gen X about $2.1M, and baby boomers $2.8M—and experts note many nominal millionaires’ investable assets are well under $1M once home equity is excluded. Respondents and advisers characterize wealth increasingly as security, time and well‑being rather than conspicuous consumption, a shift that, coupled with housing affordability headwinds for younger cohorts, has implications for savings behavior, retirement planning and asset allocation.

Analysis

A Charles Schwab survey of 2,200 U.S. adults conducted April 24–May 23 finds respondents on average now require $2.3 million to be considered wealthy and $839,000 to be “financially comfortable”; the $2.3M figure is down from $2.5M last year but remains 21% above 2021’s $1.9M. Sixty-three percent of respondents say the bar to wealth is rising due to inflation, a weakening economy and higher taxes, signaling elevated consumer cost concerns rather than improved balance sheets.

Generational splits are pronounced: Gen Z sets the lowest thresholds ($1.7M wealthy, $329k comfortable), millennials and Gen X around $2.1M, and baby boomers $2.8M, reflecting differing priorities between lifestyle and security. Experts cited in the piece emphasize that many nominal millionaires include home equity in net worth, meaning investable assets are frequently under $1M and magnifying perceived shortfalls.

Respondents and advisers frame wealth more as security, time and well-being than conspicuous consumption, implying demand for planning focused on liquidity, retirement sufficiency and non‑financial measures of welfare. The piece’s mildly negative sentiment and small market‑impact score suggest consumer pessimism could influence savings behavior and product demand for income/liquidity solutions rather than risk-on accumulation strategies.

Key Decisions for Investors

• Stress-test retirement and financial plans excluding home equity and assume lower real returns and higher costs, since experts say investable assets are often below $1M
• Shift client communications and product exposure toward income, liquidity and cash-flow solutions (short-duration fixed income, annuity-like products, larger cash buffers) because respondents prioritize security and time over luxury
• Monitor housing affordability, mortgage rates and tax-policy developments as key drivers of perceived wealth and potential reallocations between housing and financial assets
• Consider modest de-risking or increasing liquidity for portfolios sensitive to consumer sentiment while tracking Schwab’s survey and similar indicators for signs of changing saving and consumption patterns