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Are You In The Top 1%?

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Avatar for MikeZillo
Written by   7
4 months ago

The concept of "1%" has captured the American public's imagination over the past few years. The phrase is everywhere, from presidential debates to protest signs. But as precise as the sentence seems, it's a vague term. So, let's clarify today with this article.

Who is in the top 1% of net worth in America?

According to a survey conducted on one thousand Americans aged between 24 and 74 years, from the annual Modern Wealth Survey 2021, to be considered wealthy it is necessary to have a net worth close to 2 million dollars, to be precise 1.9 million dollars, which corresponds in euros to 1.55 million. This figure is lower than that declared for the year 2020, during which it was found that Americans considered themselves rich with a net worth equivalent to or greater than 2.6 million dollars.

Certainly, there are many who aspire to become part of the 1% club, but for many the pandemic has had quite a few repercussions, with a consequent drop in wealth expectations. In fact, out of one thousand respondents, 53% said they had experienced negative consequences due to the pandemic situation. Many have suffered job loss, been furloughed, or had their wages reduced.

The average net worth of Americans is currently around $748,800, far from what one would need to achieve to be considered wealthy. In addition, the average U.S. household net worth in 2019 was lower still, at just $121,700.

However, wealth expectations are not considered the same for everyone, but vary by age, with young people being satisfied with even lower figures. People between the ages of 24 and 39, known as Millennials, are on the $1.4 million mark. Gen X, or those between the ages of 40 and 55, are at $1.9 million. Finally, people between the ages of 56 and 74, known as Baby Boomers, would have to own $2.5 million in assets to be considered wealthy. On the other hand, in order to be able to succeed in the top 1% ranking of the richest people, you need to own a net worth that exceeds $11 million.

How many are in the top 1%?

Depending on your preference, the top 1% of households have approximately 1,286,000 households or 1,762,000 workers.

Are millionaires in the top 1%?

No. By net worth, millionaires are slightly above the top 10% of U.S. net worth, but nowhere near the top 1%. A household with $1,000,000 in net worth would need roughly 11 times as much wealth to be in the top 1%.

Discovering these numbers, it's really curious how much wealth an American must have to be considered in the top 1%. We often believe that "simple" millionaires are already among the wealthiest people in the nation. Instead, we find that, proportionate to the top 1%, they still have a long way to achieve the top 1%.

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Avatar for MikeZillo
Written by   7
4 months ago
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