Most Millionaires Don't Consider Themselves Wealthy. So What Does It Really Mean To Be Rich?
Most Millionaires Don't Consider Themselves Wealthy. So What Does It Really Mean To Be Rich?
Ivana Pino Ivana Pino · Senior Writer Updated December 18, 2025 Yahoo Personal Finance
A new Schwab survey finds that only a third of America’s millionaires feel wealthy. By most traditional measures, having a net worth of $1 million should put someone firmly in the “wealthy” category. Yet a growing number of millionaires don’t see it that way. Just one third (36%) of the nation’s wealthiest citizens — those with at least $1 million in investable assets — consider themselves wealthy, according to Northwestern Mutual’s 2025 Planning and Progress study.
Further, nearly half (49%) of American millionaires say their financial planning needs improvement, citing the possibility of outliving their savings, the impact of taxes in retirement, and potential long-term care needs as their top financial concerns.
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This gap may be surprising, but it highlights how rising costs, longer lifespans, and shifting expectations have redefined what it means to feel rich in modern America.
Why $1 million doesn’t feel like a lot of money anymore
One reason most millionaires don’t consider themselves wealthy is because our definition of wealth has changed over time.
“Being a millionaire used to mean you had done really well and ‘made it,’” said Tom Mathews, CFEd, CPA, and author of "How Money Works." “Today, it really just means you’ve crossed an outdated line.”
Mathews explained the problem isn’t necessarily that people have less money today, but rather, they have less certainty and control around their finances. “Things like inflation, rising taxes, market volatility, and the escalating cost of housing, healthcare, and education have changed what financial security feels like,” he said. “A million dollars on paper doesn’t stretch the way it used to, especially when most of that net worth is tied up in illiquid assets like homes, retirement accounts, or businesses.”
There’s also the issue of longevity. With people living longer, a seven-figure portfolio may not seem substantial when it’s expected to fund decades of living expenses and rising medical costs.
In other words, Mathews said, many people might look wealthy on paper, but that doesn’t mean they feel financially secure.
What does it mean to be rich today?
If millionaires don’t necessarily feel wealthy, what does it take to feel rich in today’s economy?
According to Charles Schwab’s 2025 Modern Wealth Survey, Americans need an average net worth of $839,000 to be financially comfortable, and $2.3 million to feel wealthy.
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