What is the top 1 financially?
According to a Congressional Budget Office report, you need at least $652,657 in income per year to make the top 1%, but this varies by where you live. While making six figures is not within the reach for many people, a financial advisor can help you build a financial plan for the future.
There is another level of financial elite within the 1% called ultra-high net work individuals, or UHNWI. In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd.
| Bracket | Average annual wges |
|---|---|
| Top 0.1% | $3,212,486 |
| Top 1% | $823,763 |
| Top 5% | $342,987 |
| Top 10% | $173,176 |
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
You now need a net worth of at least $5.8 million in order to be part of that small but elite group, according to the upcoming 2024 wealth report from Knight Frank. That is a notable 12% increase from the $5.1 million needed just one year ago.
The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury.
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
According to Schwab's 2023 Modern Wealth Survey, its seventh annual, Americans said it takes an average net worth of $2.2 million to qualify a person as being wealthy.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
What is the top 5 percent net worth in the US?
On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.
The top 10% of household incomes starts at $191,406, the top 5% at $290,406, and the top 1% at $867,436. Those are the nationwide numbers, but they also vary considerably if you account for other factors, such as age or location. Income is a key part of personal finance, but it's not all that matters.
| Data | Top third | Top 3% |
|---|---|---|
| Household income | ||
| Lower threshold (annual gross income) | $65,000 | $200,000 |
| Exact percentage of households | 34.72% | 2.67% |
| Personal income (age 25+) | ||
Landing in the top 10% is a fairly attainable goal for upwardly mobile Americans. A study by the Economic Policy Institute (EPI) found that the average earnings of those in the top 10% were roughly $173,000 in 2020.
To hold a top 1% net worth in America, according to Knight Frank, a person in 2024 must have a net worth of at least $5.8 million. This amount is at least $7.2 million lower than what the Federal Reserve believes is required to be in the top 1% net worth in America.
There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.
The average net worth of someone younger than 35 years old is $183,500, as of 2022. From there, average net worth steadily rises within each age bracket. Between 35 to 44, the average net worth is $549,600, while between 45 and 54, that number increases to $975,800.
| Age Range | Median Net Worth | Average Net Worth |
|---|---|---|
| 55-64 | $212,500 | $1,175,900 |
| 65-74 | $266,400 | $1,217,700 |
| 75+ | $254,800 | $977,600 |
$700k can last you for at least 25 years in retirement if your annual spending remains around $40,000, following the 4% rule. However, it will depend on how old you are when you retire and how much you plan to spend each month as a retiree.
What is a comfortable net worth?
Here's a look at the net worth residents of each city say you need to be considered financially comfortable in 2023, ranked by net worth thresholds: San Francisco: $1.7 million. Southern California (includes Los Angeles and San Diego): $1.5 million. New York City: $1.2 million. Seattle: $1 million.
One rule of thumb is to estimate your expenses, subtract the sources of income, and then multiply the number by 25. “This will be a good ballpark estimate for how much you should have saved and invested in a well-diversified portfolio in order to meet your income needs in retirement,” Abrams says.
| Age range | Average balance | Median balance |
|---|---|---|
| 25-34 | $30,017 | $11,357 |
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
Yes. The value of your 401(k) account is a part of your net worth and should be included in your net worth. Like anything else of financial value, the vested balance of your 401(k) account — or any retirement account, for that matter — is considered an asset.
Average net worth: $192,700
The median net worth of Americans in 2022 was $192,700, according to the Federal Reserve. That's a $51,555 increase from 2019, roughly a 37% jump and the largest recorded since the Fed began collecting this data in 1989. (Data is in 2022 dollars.) Click to access available viewer actions.
References
- https://livingwage.mit.edu/articles/103-new-data-posted-2023-living-wage-calculator
- https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
- https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/help-if-youre-struggling-with-debt
- https://money.com/richest-1-percent-america-other-countries/
- https://www.chase.com/personal/banking/education/budgeting-saving/how-much-income-should-go-to-rent
- https://thehill.com/lobbying/4170972-15-an-hour-isnt-enough-u-s-workers-need-to-earn-a-living-wage/
- https://www.linkedin.com/pulse/how-much-does-25hour-worker-really-earn-year-financiallywelloff-umxwe
- https://www.jamescole.co/blog/what-is-the-70-20-10-rule-for-money
- https://www.investopedia.com/retirement/relief-401k-hardship-withdrawals/
- https://hiatusapp.com/learn/hiatus-guides/the-most-common-budgeting-mistakes-to-avoid/
- https://www.experian.com/blogs/ask-experian/what-is-the-20-10-rule/
- https://money.usnews.com/money/personal-finance/articles/what-is-the-average-american-net-worth-by-age
- https://www.nbc.ca/personal/advice/credit/tips-financial-problems.html
- https://www.kiplinger.com/personal-finance/605075/are-you-rich
- https://www.ziprecruiter.com/Salaries/Decent-Salary
- https://www.healthdirect.gov.au/financial-stress
- https://eringobler.com/80-20-rule/
- https://www.pewresearch.org/2023/12/04/the-assets-households-own-and-the-debts-they-carry/
- https://www.talent.com/convert?salary=100&start=hour&end=year
- https://finance.yahoo.com/news/much-money-top-1-5-100000529.html
- https://www.nasdaq.com/articles/11-signs-youre-struggling-financially-and-3-ways-to-get-back-on-track
- https://www.cnbc.com/2024/03/20/salary-single-person-needs-to-live-comfortably-in-major-us-cities.html
- https://finance.yahoo.com/news/wealthy-net-worth-considered-poor-190014440.html
- https://www.foxbusiness.com/money/heres-how-much-money-you-need-make-join-worlds-richest-1-percent
- https://www.forbes.com/advisor/banking/american-debt-and-the-mental-health-epidemic/
- https://www.treatmyocd.com/what-is-ocd/common-fears/spending-money-makes-me-extremely-anxious-what-can-i-do
- https://www.talent.com/convert?salary=100000&start=year&end=hour
- https://www.psychologytoday.com/us/blog/talking-apes/201907/do-women-really-prefer-men-money-over-looks
- https://time.com/6966650/money-stress-illness/
- https://livelovesimple.com/saved-10000-six-months/
- https://www.sofi.com/learn/content/70-20-10-rule/
- https://www.businessinsider.com/personal-finance/how-much-should-i-save-each-month
- https://money.usnews.com/money/retirement/401ks/articles/what-net-worth-do-you-need-to-retire
- https://finance.yahoo.com/personal-finance/how-to-save-10000-in-a-year-211127729.html
- https://www.bankrate.com/personal-finance/debt/can-you-get-out-of-debt-without-paying/
- https://livingwage.mit.edu/states/06
- https://www.clevergirlfinance.com/70-20-10-budget/
- https://www.lendingtree.com/student/simple-budget/
- https://finance.yahoo.com/news/25-best-cities-where-retire-051546942.html
- https://penntoday.upenn.edu/news/does-more-money-correlate-greater-happiness-Penn-Princeton-research
- https://www.linkedin.com/pulse/pros-cons-503020-budgeting-rule-hunter-coleman
- https://toolkit.lifeline.org.au/topics/financial-stress/what-is-financial-stress
- https://hiatusapp.com/learn/hiatus-guides/70-20-10-budget-rule-what-it-is/
- https://www.statefarm.com/simple-insights/financial/how-to-use-the-50-30-20-budget-rule
- https://www.nhs.uk/every-mind-matters/lifes-challenges/money-worries-mental-health/
- https://www.unbiased.com/discover/banking/how-much-income-puts-you-in-the-top-1-5-or-10
- https://finance.yahoo.com/news/rich-heres-americans-think-considered-182847861.html
- https://www.thrivent.com/insights/budgeting-saving/what-does-it-mean-to-pay-yourself-first
- https://www.nasdaq.com/articles/how-can-you-tell-if-someone-is-a-millionaire
- https://jupiter.money/blog/need-money-urgently/
- https://www.latimes.com/compare-deals/banking/savings/7-percent-interest-savings-accounts
- https://www.ccl.org/articles/leading-effectively-articles/70-20-10-rule/
- https://www.sofi.com/learn/content/is-40000-a-good-salary/
- https://finance.yahoo.com/news/why-50-30-20-budget-120032412.html
- https://n26.com/en-eu/blog/50-30-20-rule
- https://www.nasdaq.com/articles/grant-cardone-swears-by-the-40-40-20-rule%3A-i-guarantee-youll-create-wealth-for-yourself
- https://www.prnewswire.com/news-releases/only-1-in-10-americans-are-living-their-definition-of-financial-freedom-achieve-survey-finds-301906121.html
- https://www.opers.org/financial-wellness/50-20-30-calculator/
- https://finance.yahoo.com/news/income-level-considered-rich-140003986.html
- https://www.usatoday.com/money/blueprint/investing/are-you-upper-middle-class/
- https://www.snagajob.com/salary-calculator?pay=30&period=hour
- https://www.sofi.com/learn/content/i-make-80k-a-year-how-much-house-can-i-afford/
- https://finance.yahoo.com/news/know-im-rich-140000452.html
- https://www.1stunitedcu.org/more-for-you/financial-wellness/dealing-with-financial-anxiety--how-to-decrease-stress-around-money
- https://www.usatoday.com/money/blueprint/business/hr-payroll/average-salary-us/
- https://www.unfcu.org/financial-wellness/50-30-20-rule/
- https://www.cnbc.com/2024/01/23/how-much-money-americans-need-to-earn-to-be-financially-independent.html
- https://www.cnbc.com/2024/03/27/how-much-money-family-of-4-needs-to-live-comfortably-in-us-cities.html
- https://www.snagajob.com/salary-calculator?pay=4000&period=month
- https://buddypunch.com/blog/how-do-i-calculate-my-salary-per-hour/
- https://www.wsj.com/buyside/personal-finance/50-30-20-rule-budgeting-method-3d3ed0cf
- https://en.wikipedia.org/wiki/Affluence_in_the_United_States
- https://medium.com/@barneyabramson/happiness-over-millions-whats-more-important-f9e58cf53bf3
- https://finance.yahoo.com/news/want-retire-us-juicy-income-113000778.html
- https://www.usatoday.com/story/money/personalfinance/2023/09/08/cost-of-happiness-by-country-cities/70771946007/
- https://fortune.com/recommends/banking/how-to-make-money-fast/
- https://www.fool.com/research/average-net-worth-americans/
- https://finance.yahoo.com/news/80-americans-still-struggling-financially-150031294.html
- https://www.nasdaq.com/articles/5-things-you-shouldnt-do-when-your-savings-reaches-$100000
- https://ktla.com/news/california/are-you-earning-enough-to-be-considered-middle-class-in-california-how-to-know/
- https://www.mind.org.uk/information-support/tips-for-everyday-living/money-and-mental-health/the-link-between-money-and-mental-health/
- https://www.ubagroup.com/57-marina/10-signs-that-indicate-financial-stability
- https://www.reuters.com/world/us/what-age-should-kids-become-financially-independent-2023-08-29/
- https://whatfix.com/blog/70-20-10-model/
- https://www.choosefi.com/financial-basics/save-on-big-three-expenses/
- https://finance.yahoo.com/news/makes-feel-rich-heres-average-180728598.html
- https://www.cnbc.com/select/how-to-feel-rich-on-a-budget/
- https://www.empower.com/personal-investors/net-worth
- https://www.investopedia.com/terms/l/living_wage.asp
- https://www.equifax.com/personal/education/life-stages/articles/-/learn/how-much-should-i-have-saved-by-middle-age/
- https://www.bloomberg.com/news/articles/2024-03-11/us-financial-insecurity-at-a-record-as-higher-cost-of-living-makes-saving-hard
- https://www.bankrate.com/personal-finance/american-opinions-on-personal-finances-and-us-economy-since-2020-election/
- https://calculator.me/planning/hourly-to-annual.php
- https://thehill.com/homenews/nexstar_media_wire/4603485-are-you-still-earning-enough-to-be-middle-class-check-these-new-tables/
- https://www.cbsnews.com/news/wealth-1-percent-5-8-million-knight-frank-report/
- https://www.fastinvest.com/en/blog/what-does-it-mean-to-be-financially-stable
- https://www.linkedin.com/pulse/mastering-your-finances-budgeting-60000-salary-60-20-20-zain-timimi-r0ojc
- https://www.nerdwallet.com/article/finance/how-to-budget
- https://themillennialmoneywoman.com/how-to-get-rich/
- https://outofyourrut.com/10-ways-to-be-rich-without-being-wealthy/
- https://www.indeed.com/career-advice/finding-a-job/simple-high-paying-jobs
- https://finance.yahoo.com/news/retire-60-just-300-000-130017584.html
- https://www.ziprecruiter.com/Salaries/27-Dollars-An-Hour-Salary
- https://fastercapital.com/content/Strategies-To-Get-Financial-Assistance-From-Family-And-Friends.html
- https://finance.yahoo.com/news/live-1-000-per-month-200011859.html
- https://www.snagajob.com/salary-calculator?pay=25&period=hour
- https://www.citizensbank.com/learning/50-30-20-budget.aspx
- https://www.financialsamurai.com/obtaining-a-top-1-net-worth-easier-than-ever/
- https://www.rocketmoney.com/learn/personal-finance/financially-stable
- https://time.com/personal-finance/article/50-30-20-rule/
- https://www.unbiased.com/discover/retirement/retire-on-700k
- https://genistar.co.uk/articles/10-10-10-70-budgeting-principle
- https://www.npr.org/sections/money/2023/06/13/1179216653/what-personal-financial-stress-can-do-to-the-economy
- https://www.quora.com/What-is-the-percentage-of-people-who-make-more-than-100k-per-year-in-the-US-How-many-people-make-over-1M-year-Is-there-a-difference-in-these-numbers-based-on-state-or-city
- https://smartasset.com/retirement/cover-4k-monthly-60-with-800k-in-savings
- https://hermoney.com/connect/why-being-financially-stable-is-sexy/
- https://www.mentalhealthandmoneyadvice.org/en/top-tips/what-is-financial-anxiety/
- https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp
- https://www.quora.com/How-many-people-have-3-000-000-in-savings-in-the-USA
- https://www.fool.com/the-ascent/personal-finance/articles/whats-the-income-of-the-top-10-5-and-1/
- https://www.creditsmart.org.au/financial-hardship/financial-hardship-and-your-credit-report/
- https://www.iciciprulife.com/protection-saving-plans/what-is-the-50-30-20-rule-for-budgeting.html
- https://fortune.com/2023/03/09/how-much-money-do-you-need-to-be-happy/
- https://www.sofi.com/learn/content/signs-you-are-financially-stable/
- https://smartasset.com/financial-advisor/average-net-worth-at-retirement
- https://www.cnbc.com/2023/06/20/how-much-money-it-takes-to-be-financially-comfortable.html
- https://www.cnn.com/cnn-underscored/money/average-401k-balance-by-age
- https://www.quora.com/What-are-legal-ways-to-make-1-000-per-hour
- https://www.bankrate.com/retirement/average-monthly-social-security-check/
- https://www.forbes.com/advisor/banking/guide-to-50-30-20-budget/
- https://societyone.com.au/blog/the-50-30-20-budgeting-rule-explained
- https://www.quora.com/If-I-make-1-million-per-year-how-much-would-my-hourly-wage-be
- https://www.nerdwallet.com/article/finance/nerdwallet-budget-calculator
- https://www.unbiased.com/discover/retirement/retiring-with-800k
- https://localfirstbank.com/article/how-much-money-should-i-have-saved-by-the-time-i-am-30/
- https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/is-the-60-30-10-budget-rule-replacing-the-50-30-20-experts-hope-not
