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Why America’s Richest Millionaires Don’t Consider Themselves ‘Wealthy’
By Adam Hardy MONEY RESEARCH COLLECTIVE
Most U.S. millionaires say they don’t feel wealthy, blaming inflation, costs and social comparison.
They might belong to the two-comma club, but don’t call them “wealthy.”
Nearly two-thirds (64%) of U.S. millionaires don’t consider themselves to be “wealthy,” according to a new report from insurance firm Northwestern Mutual. The share of millionaires shunning the term is down slightly from last year — the first time the firm asked the question — when 68% of millionaires said the same.
“A million dollars is undoubtedly a substantial sum, but money alone does not inherently create financial confidence,” Douglas Benson Jr., founder of Benson Wealth Management, says in an email.
Typically, when calculating net worth, people factor in retirement accounts and property. By that definition, about 24 million Americans are millionaires.
However, Northwestern Mutual defines “millionaire” not by net worth but by owning at least $1 million of investable assets, excluding retirement accounts and homes. Under this strict definition, far fewer qualify, but the exact number is difficult to pin down.
A separate wealth gauge by Capgemini reveals that about 7.9 million Americans own at least $1 million of investable assets. Only 3% of U.S. adults meet that definition, although this measure is also broader than Northwestern Mutual’s because it includes retirement accounts.
The millionaires included in Northwestern’s study provide a glimpse of the nation’s richest people who not only have net worths of $1 million — but have at least $1 million readily available in their financial accounts.
Why don’t America’s richest feel ‘wealthy’?
Money asked certified financial planners, or CFPs, who advise high-net-worth people whether the trend holds true for their clients — and why they might feel that way.
Eric Roberge, founder of the Boston wealth management firm Beyond Your Hammock, says one of his clients, who has over $3 million in investable assets, recently asked him: “Why do we feel so poor?”
According to Benson, whose Iowa-based firm is affiliated with Northwestern Mutual, there are several social and economic factors that come into play that keep millionaires from feeling wealthy, despite owning more assets than approximately 97% of U.S. adults.
On the economic side, recent bouts of inflation have eroded the buying power of $1 million. And in certain areas of the country with disproportionately high costs of living, $1 million “may not provide the expected financial comfort,” Benson says.
Still, even in New Mexico, “that trend absolutely rings true,” says Nathan Sebesta, owner of Access Wealth Strategies.
For many of his high-net-worth clients, the social factors are more heavily at play, as they often compare themselves to other people who are multimillionaires or even billionaires.
“Wealth has become a moving target,” he says.
Roberge explains that people often need to have more than the people around them to “feel wealthy.” But he says, as people accumulate vast sums of wealth, the people around them tend to change: different friends because your kids are now in private school, different neighbors because you live in an exclusive neighborhood and different colleagues because you landed an executive role at a major company.
“Now [you’re] surrounded by people who have even more than you — even though you’re well-off, too,” he says. “It’s a never-ending cycle, and the people who do not recognize this effect will always feel behind.”
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Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 300 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on some of Money’s marquee rankings, including Best Places to Live, Best Places to Travel and Best Hospitals. He regularly contributes data reporting for Best Colleges, Best Banks and other lists as well. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors (IRE) at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in Saint Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.