A million dollars doesn't mean what it used to, according to a new Northwestern Mutual report.

A million dollars is not what it used to be.

Only 36% of American millionaires consider themselves wealthy in 2025, according to new research from Northwestern Mutual.

The finding comes from the 2025 Planning & Progress Study, updated in early November. It draws on a Harris Poll survey of 4,626 Americans, including 969 people with household investable assets greater than $1 million.

Even the wealthiest Americans worry about money, the study found. They fret about having enough of it, deciding how to spend it and whether to pass it on to heirs.

  • FishFace@piefed.socialEnglish
    1·
    2 days ago

    Average S&P return is 10%, but average US inflation is 7.8%, which gives you a yearly return in today’s dollars of $22,400. If you did your plan and bought a house for $250k, (well below the US median house price, but I’ll take your word for it that it’s plausible) you’d expect to indefinitely get $16,800 a year. If you add on the average US rent ($1,700) which you wouldn’t be paying with an outright-owned house, you get an equivalent yearly income of $37,700. In 2023 this would’ve put you in between the 4th and 5th deciles, so slightly below median.

    So, if you think the middle class is squeezed in the USA, then you should also think that someone with a million dollars would be squeezed if they quit their job and retired intending to live of it.

      • FishFace@piefed.socialEnglish
        1·
        2 days ago

        Christ I think I copied the wrong figure and it should actually be 2.9%.

        I’m on mobile ATM so can’t conveniently check but that likely changes the income decile considerably.