Will You Be Rich? Here's What Percentage Of People Think They'll Attain A High Net Worth

What does it mean to be wealthy? According to a survey conducted by Empower, the definition of a high-net-worth individual (HNWI) varies considerably among U.S. adults. While the widely accepted benchmark classifies HNWI as someone with at least $1 million in liquid assets, the median response from surveyed adults pegged it at $400,000.

Despite this lower threshold, 74% of respondents believe achieving high-net-worth status is unlikely for them. A slim margin, 3%, confirmed they have reached this financial milestone.

Don't Miss:

Actual Number Of High-Net-Worth Individuals 

According to the 2024 USA Wealth Report, the United States is home to 5.5 million HNWIs, defined as those with assets of at least $1 million. 

While achieving high-net-worth status may seem out of reach to many, it’s more achievable than most realize. Economic factors such as inflation can skew perceptions of wealth; as prices rise, the value of $1 million today might not seem as substantial as it did in the past, leading to a misconception that such wealth is more elusive. 

The media often highlights extreme wealth, which can distort expectations and make the goal of becoming a millionaire feel less attainable.

Despite these psychological and economic barriers, many are closer to reaching high net worth than they think, especially if they employ key financial strategies. 

Trending: If the United States had access to today’s high-yield savings accounts rates in 2015, it wouldn’t need to save another penny.

Key Factors Believed Necessary To Achieve A High Net Worth

Survey participants identified several factors critical to accumulating substantial wealth:

  • Regularly monitoring and managing finances (65%)
  • Earning a high salary (64%)
  • Having multiple sources of high earning potential (63%)
  • Maintaining a diversified investment portfolio (59%)
  • Practicing frugality (57%)
  • Investing in real estate (55%)

Nearly 3 in 10 (29%) believe that familial assistance or an inheritance plays a significant role in reaching high-net-worth status.

Respondents assert that a high annual income — specifically $100,000 — is necessary for achieving wealth. However, while earning is crucial, making your money work effectively is equally important.

The Role Of Financial Planning

Empower’s data shows that retirement accounts like 401(k)s and individual retirement accounts (IRAs) constitute nearly 55% of the assets of high-net-worth individuals, highlighting the significant role these accounts play in wealth accumulation.

Financial planning doesn’t necessarily hinge on achieving a high net worth. It’s about setting realistic financial goals, creating a robust plan to meet them and considering elements like tax management, insurance and estate planning to protect and grow assets regardless of their current size. 

Consulting a financial adviser can provide tailored advice and strategies to optimize financial growth and stability, ensuring that even those with modest beginnings can approach their financial future with confidence.

Read Next:

Market News and Data brought to you by Benzinga APIs
Posted In: Personal FinancePersonal Finance Access
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!