Only 36% of millionaires felt wealthy last year. If $1M isn’t enough, how much money does it take to feel rich now?

A million dollars used to be the finish line. Today, it barely feels like a milestone.

Research from Northwestern Mutual shows that only 36% of U.S. millionaires identified as “wealthy” last year (1), despite having at least $1 million in investable assets — a number that once symbolized financial freedom. In 2025, rising costs, shifting expectations and relentless comparison reshaped what “rich” meant, even for Americans who may technically qualify.

The study suggests a psychological shift that reveals just how dramatically the economy, cost of living and social norms have evolved.

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The U.S. now has nearly 24 million millionaires, the largest population of high-net-worth households in the world, according to UBS’ 2025 Global Wealth Report. (2) Wealth creation accelerated during the pandemic as home prices surged and more Americans invested in the stock market.

But even as more Americans cross the millionaire mark, there are many reasons why a million no longer feels like wealth. The location gap plays a major role: a million dollars in rural Oklahoma or Missouri can provide a spacious home, relatively low taxes and plenty of financial breathing room.

But in heavily populated coastal metros, like New York City or Los Angeles, hot real estate markets mean it might not even cover a modest condo.

Lifestyle expectations also magnify the divide. Millionaires tend to socialize with other millionaires, which means they’re constantly comparing themselves to friends, colleagues or social media influencers who may have far more — a form of financial relativity that makes even seven figures feel small.

Advisors say this “comparison trap” (3) is powerful. When everyone around you appears to be earning more, investing more or inheriting more, a million dollars stops feeling exceptional. In that context, wealth becomes relative — and for many, perpetually out of reach.

“All of my clients who are millionaires do not consider themselves wealthy, not by a long shot,” Liz Windisch, a certified financial planner in Denver, told USA Today. (4)

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The Economic Policy Institute reports that the average American household income as of 2023 was $80,610. To be in the top 20% of earners, you’d have to make almost double the average, over $130,500 a year. (5) While the IRS benchmark for being a 1-percenter is income above $540,009 per year, the Institute puts that figure at $819,324 a year. (6)