A recent survey by Ameriprise Financial, involving approximately 3,000 affluent American millionaires, has unveiled a surprising trend where only 8% of respondents, equivalent to around 240 individuals, perceive themselves as wealthy.
The findings shed light on the evolving definition of financial prosperity among high-net-worth individuals.
The study underscores that a considerable number of millionaires are more focused on safeguarding their amassed wealth rather than basking in their financial status.
Around 60% of investors with $1 million or more in investable assets expressed a self-perception of being more akin to the upper middle class. Moreover, 31% of respondents considered themselves decidedly middle class, reported CNBC.
Income thresholds for the top 1% of American taxpayers vary by state, with an average annual income of around $652,657. In states like Connecticut, which boasts the highest top-1% income threshold, the figure reaches a peak of $952,902, according to financial advisory SmartAsset.
Kim Maez, a certified financial planner and private wealth advisor at Ameriprise, commented on the prevailing economic sentiment, noting that many individuals feel pressured amid rising prices and fluctuating asset values. She said that while such economic cycles are inevitable, they also contribute to a sense of discomfort.
The survey also delves into the financial aspirations of Americans in terms of feeling secure and rich.
According to a separate Bankrate survey, respondents indicated that they would need an average annual income of $233,000 to feel financially secure. However, to consider themselves truly rich, the respondents cited a considerably higher figure, averaging at $483,000 per year.
These findings reflect the ongoing challenges faced by households in meeting financial needs, including increasing child-care expenses, rising auto loans, elevated mortgage rates, record-high rents, and the resumption of student loan payments.
The juxtaposition of economic factors has created an environment where even those with substantial wealth may not readily perceive themselves as affluent.