Are You Wealthy? The Net Worth You Need To Be Considered Poor, Middle-Class And Wealthy In America

Are You Wealthy? The Net Worth You Need To Be Considered Poor, Middle-Class And Wealthy In America

AJ Fabino

Thu, January 22, 2026 at 2:31 PM EST

3 min read

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In the United States, a person’s net worth is a barometer of their financial standing, particularly as they approach retirement. This figure, calculated by subtracting liabilities from assets, varies considerably across the population, shaping the retirement lifestyle and economic security of millions.

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Finance expert and author Geoff Schmidt evaluates retiree wealth using the latest data from the Federal Reserve Board's Survey of Consumer Finances.

Poor: Households in the bottom 20th percentile of the wealth distribution, with a net worth of around $20,856, are categorized as poor, according to the Federal Reserve Bank of Richmond. This group likely doesn't own a home and focuses financial resources on necessities.

Middle class: The middle class is around the 50th percentile, with a median household net worth of roughly $193,000 for all adults. This typically includes home equity, savings and a 401(k) account.

Wealthy: To be considered well off, a person generally needs to be in the top 10th percentile of the wealth distribution. According to Federal Reserve–based benchmarks, the 90th percentile threshold is about $1.6 million, a level of wealth that affords discretionary spending like trips, charity donations and college funds. The 95th percentile, with a net worth near $3.8 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, often defined as the 99th percentile and above, sits at wealth levels estimated around $11.6 million or more, placing these households among the very wealthy who enjoy considerable financial freedom and luxury.

Average And Median Net Worth By Age

Based on the latest Federal Reserve Survey of Consumer Finances:

Americans aged 55–64: This group tends to be near the peak of their wealth accumulation, with average net worth figures (based on the most recent representative data) generally above $1.5 million.

Americans aged 65–74: Average net worth continues to rise slightly in this age bracket, often near $1.78 million, reflecting continued asset growth and retirement savings before drawdown begins.

75 and older: Net worth typically declines after retirement, with average figures for this demographic standing around $1.62 million, as retirees gradually draw down assets during retirement years.

Wealth Perception In America

According to Schwab’s 2024 Modern Wealth Survey, Americans perceive an average net worth of $2.5 million as wealthy.

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Research on net worth required to join elite wealth brackets shows that being in the top 1% of U.S. households typically corresponds with net worth levels above $11 million.

Economic Class Net Worth

A growing number of Americans are entering retirement with debt. Historical data trends show that the proportion of older households with debt has risen significantly. For example, households led by people 65 and older with debt increased substantially over recent decades, with mortgages making up a significant share of that debt load. Although exact newer numbers are pending release from forthcoming Survey of Consumer Finances cycles, this trend points to debt burden remaining a meaningful component of retirement financial health in current cohorts.

The Importance Of Financial Planning

Net worth at retirement age in the U.S. varies considerably and is shaped by elements such as homeownership, savings and debt. While the middle class and wealthy often experience financial security, a notable segment of the population confronts economic challenges. This disparity points to the role of financial planning and management, including the valuable assistance of financial advisers, and you can connect to one through SmartAsset, for free.

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This article Are You Wealthy? The Net Worth You Need To Be Considered Poor, Middle-Class And Wealthy In America originally appeared on Benzinga.com

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