It takes more to be viewed as rich in the U.S. this year than it used to, according to new data.
Charles Schwab's annual Modern Wealth Survey released this week found Americans now believe it takes a $2.5 million net worth on average to be considered wealthy in 2024, up from $2.2 million for the past two years.
Older generations actually think $2.5 million isn't enough to be considered rich, with baby boomers saying on average that the threshold for wealth should be $2.8 million. Gen Xers said the number is more like $2.7 million.
Respondents in certain cities and regions feel like $2.5 million is a low bar, too.
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In San Francisco, residents said a person needs $4.4 million to be considered wealthy, and in the Southern California region, folks as a whole set the number at $3.4 million in this year's survey.
New Yorkers say it takes $2.9 million to be rich, while residents of Washington, D.C., Denver, and Seattle all said on average that being wealthy means a $2.8 million net worth.
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Although the results showed Americans think it takes more to be wealthy now than it did in years past, it indicated they believe the amount needed for financial comfort has declined.
Respondents said that in 2024 it takes a $778,000 net worth to be financially comfortable, down from last year's survey, where they said it takes a cool $1 million.
More than 1 in 5 (21%) of those surveyed this year said they are on track to becoming wealthy in their lifetimes, but Schwab acknowledged that there are varying perspectives on what it means to be rich.
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"‘Wealth’ means different things to different people," said Rob Williams, managing director of financial planning at Charles Schwab, "whether it’s financial freedom, enriching experiences with friends and family, or a certain dollar amount."
