Only 33% of American millionaires think they are rich, finds study

The total net worth of the top 1 percent -- those with wealth over $11 million -- increased by nearly $2 trillion to hit a record $46.2 trillion in the first quarter of 2024. (Representational image: Unsplash)

Despite an unprecedented wealth boom, only 33 percent of millionaires in the US consider themselves rich, CNBC reported quoting findings from the recently released report by Edelman Financial Engines. It added that only 12 percent of Americans think of themselves as wealthy.

The wealth planning firm evaluated more than 3,000 people over 30 between June 12 and July 3. Among them, 1,500 participants were affluent Americans with household assets between $500,000 (about Rs 4 lakh) and $3 million (about Rs 25 crore).

"In our third year of conducting this research, we’re once again noticing that many Americans – even the affluent – aren’t feeling overly confident about the state of their finances. Part of these worries stem from external pressures, like inflation or a turbulent election environment, while some are individual pressures, such as family responsibilities and mounting credit card debt,” Amin Dabit, SVP, head of Wealth Planning at Edelman Financial Engines, said.

According to the report, in recent years, inflation has played an important role in raising the bar on the amount of money people believe they need to feel wealthy. Among those who believe they fall short of being wealthy, 65 percent believe they would need an annual income of at least $1 million (about Rs 8 crore) and
19 percent think at least $5 million (about Rs 42 crore) is necessary.

Moreover, 58 percent Americans believe they need to earn at least $100K (about Rs 84 lakh) a year to not worry about everyday living expenses, and 25 percent believe a salary of more than $200K (about Rs 1.6 crore) is required.

Meanwhile, the total net worth of the top 1 percent -- those with wealth over $11 million -- increased by nearly $2 trillion to hit a record $46.2 trillion in the first quarter of 2024, largely boosted by gains from their stock holdings, CNBC reported quoting data from the Federal Reserve.