This Is How Much Money Americans Say They Need to Feel Rich

How much money, exactly, do you think you need to have in order to feel rich? According to a new survey by GOBankingRates, that number is getting higher and higher. 

GOBankingRates released the findings of its latest survey exploring Americans’ perceptions of what “rich” really means, at least when it comes to their finances. The findings included “how much total money they would need in savings and investments to feel financially secure, whether or not they believe they will achieve millionaire status, and whether or not they believe they have saved enough for retirement,” it shared in a statement provided to Travel + Leisure. 

They figured this all out by asking 1,000 Americans ages 18 and older from across the country 13 questions, including “Do you believe you will be a millionaire in your lifetime? What annual income would you need to feel personally wealthy? How do you define ‘wealth’?” and “If you lost your job today, how many months worth of expenses could your savings cover?” 

After compiling all the responses, the team found that more than one-third (34 percent) of Americans believe you need to have more than $500,000 in savings and investments to feel financially secure. And, according to experts, that’s actually a pretty solid target.

“This sentiment rings true,” Tyler Rayman, wealth management associate with Greenleaf Trust, shared in the report. But as Rayman added, even that isn’t enough to retire on. “A portfolio of that size, assuming a modest 4 percent annual withdrawal rate, would produce only $20,000 per year—an amount that often falls short of covering basic living expenses.” 

But if you’re still of working age, Rayman noted that you don’t need to have this much cash squirreled away to be financially OK. 

“True financial security could be defined by having a stable income, manageable debt, and adequate savings to handle emergencies and support retirement, not by reaching a specific net worth,” he added. “In essence, living within or below your means is often more impactful than accumulating a particular dollar figure.”

As for who thinks they’re going to reach millionaire status in this lifetime, that goes to Gen Z, who is the most confident generation of all. And, as John Gillet, CEO and founder of Gillet Agency, a financial planning firm, added, that’s a solid target for people to save up to for retirement. 

“If you consider having a million dollars to be a millionaire, then I’d argue that would probably be the coveted amount to retire with for financial security,” Gillet said. “With this number, financial levers can be utilized to guarantee adequate levels of income to weather the storms of retirement. This amount of money would work effectively in conjunction with having no major debt and good Social Security benefits.”

And Gen Z really may not be all that delusional in thinking they can get there. 

“Gen Z holds significant potential for long-term wealth accumulation, driven partially by their technological fluency and early adoption of AI,” Rayman added. “Their comfort with digital platforms grants them access to sophisticated tools for investing, budgeting, and entrepreneurship—resources that were far less accessible to previous generations.”

As for older generations, things look a bit more dire. As the findings revealed, just over a quarter of Americans ages 44 to 54 (27 percent) and 25 percent of Americans ages 55 to 64 said they believe they are on track to fund their retirement, and 20 percent of those aged 45 to 54 and 30 percent of Americans ages 55 to 64 believe they will have to work part-time throughout their retirement.

“Many Americans find themselves unprepared for retirement due to a combination of behavioral, economic, and informational challenges,” Rayman explained. “A common issue is the prioritization of immediate financial obligations over long-term planning, which can delay or derail consistent saving. Procrastination also plays a role, as many assume they will have time to ‘catch up’ on savings later, often underestimating the impact of lost compounding.”

Still, not all hope is lost. As Rayman explained, it’s an “evolving environment,” and it’s never too late to put together a financial plan.

“Financial security is not about how much you have,” Rayman added. “It is the confidence that you can meet your obligations, weather unexpected challenges, and pursue your goals without undue financial stress.”

See the full report at gobankingrates.com.