Most Americans say that to be considered “wealthy” in the U.S. in 2021, you need to have a net worth of nearly $2 million — $1.9 million to be exact.
Wealth expectations also varied by generation, with younger Americans saying they felt that lower net worths could be considered wealthy.
Here’s the net worth each generation says you need to be considered wealthy in 2021:
Millennials (ages 24 to 39): $1.4 million
Gen X (ages 40 to 55): $1.9 million
Baby boomers (ages 56 to 74): $2.5 million A drop in the net worth expectations could be due to the Covid-19 pandemic, according to Schwab.
Over half of Schwab’s 1,000 survey respondents, 53%, reported that they were financially impacted in some way by the pandemic.
Not everyone’s finances were negatively impacted by the global health and economic crisis. Thanks to stimulus payments and reduced spending, some Americans actually increased their savings levels during the pandemic.
They are missing one key point. beyond stimulus (much given to those not in need), in the last 18 months investors large and small have done quite well. Between January 2020 and June 2021 my 401k grew 20% and that’s with 50% in bond funds. That growth potential applies to every American of any age with investments.
If you would like to learn more about net worth in America, here is a good source. Net worth includes many things some of which may not be thought of as an asset. Cash value life insurance and annuities, car, HSA and 529 accounts are assets and, for most people the equity in their home is their largest asset.
HERE IS A THOUGHT to ponder. With the ongoing political attacks on “wealthy” Americans, could the misguided perceptions of being wealthy noted above lead to support for higher taxes on many more Americans than are actually wealthy.