Imagine thinking you need nearly a million dollars just to stop worrying about money. For today’s millennials, that’s not a fantasy—it’s their reality. And they’re not alone. Across generations, Americans are setting sky-high financial comfort goals, but few are coming close to actually reaching them.
A new national survey conducted by Charles Schwab reveals a striking truth: Americans believe they need an average net worth of $839,000 just to feel “financially comfortable.” To be considered “wealthy,” they think that number should climb to a massive $2.3 million.
But what happens when those financial dreams clash with harsh economic realities? The answer paints a sobering picture of financial insecurity in modern America.
Generational Breakdown: How Much Is “Comfortable”?
Not all generations share the same idea of what financial comfort looks like. According to Schwab’s survey:
- Gen Z aims for a modest $329,000
- Millennials want $847,000
- Gen X looks for $783,000
- Baby Boomers top the list at $943,000
This generational divide reflects both economic context and life stage. Younger people are often just starting their careers and managing debt, while older Americans may be thinking more about retirement and legacy.
Where You Live Matters
Your zip code can greatly influence your financial aspirations. The survey found wide differences across regions:
- South: $615,000
- Midwest: $800,000
- Northeast: $979,000
- West: $1.1 million
High living costs, real estate prices, and economic opportunities all contribute to these differences. But no matter where you live, reaching these figures is challenging for most households.
The Reality: Most Americans Are Falling Behind
The truth is, these numbers are more aspirational than achievable for the average person. According to the Federal Reserve, the median net worth of Americans aged 65 to 74 is just $409,900—less than half what baby boomers say they need to feel comfortable.
Many people’s wealth is tied up in their homes, not in liquid assets they can spend in retirement. As the old saying goes, “you can’t eat your house.”
“Those numbers are depressing,” said financial advisor Catherine Valega. “You see a world of hurt in the U.S. economy’s future.”
The Emotional Weight of Financial Stress
Jeremy Finger, founder of Riverbend Wealth Management, believes the problem runs deeper than income. He says many people struggle financially regardless of how much they earn.
“Net worth is really about flexibility and resilience,” adds financial planner David Haas. And right now, he says, “many Americans don’t have enough of either.”
What Does “Comfortable” Actually Mean?
Interestingly, Schwab didn’t define what it means to be financially comfortable—but Rob Williams, a financial planner at Charles Schwab, shared his take:
“I don’t have to live month to month. I feel like I can pay my bills. I can deal with emergencies. And I’m on track for future goals, like retirement.”
It’s about stability—not extravagance. And yet, for many Americans, even that kind of basic financial security feels out of reach.
What Should You Actually Have Saved?
So, how much should you have saved based on your age and income? Here are some benchmarks, excluding home equity:
| Age | Income | Target Savings |
|---|---|---|
| 25 | $55,000 | $11,000 |
| 45 | $105,000 | $315,000–$430,000 |
| 65 | — | $1.36–$1.7 million |
These benchmarks, recommended by the American College of Financial Services, help Americans determine if they’re on track for long-term financial freedom.
The 4% Rule: A Retirement Reality Check
Here’s how it works: If you retire with $1.7 million, and follow the “4% rule,” you can safely withdraw about $68,000 a year—enough to match the average annual spending for Americans aged 65 and older, which was around $60,000 in 2023.
But without that savings cushion, retirement becomes a struggle, especially as the cost of essentials like housing, food, and healthcare keeps rising.
Another Strategy: 20x Your Annual Expenses
Jeremy Finger suggests another method: multiply your yearly expenses by 20 or 25. If you spend $60,000 per year, you’d need about $1.2 million to $1.5 million saved for retirement.
However, Social Security can fill in part of the gap. With an average benefit of $1,950/month (about $24,000/year), you’d only need to cover the remaining $36,000 yourself—bringing your target savings down to $720,000.
Still, many Americans don’t come close to saving that much.
What’s Holding People Back?
According to financial planners, two major mistakes keep people from reaching financial comfort:
- Waiting too long to start saving
- Carrying high-interest debt, especially credit cards
“It’s not about doing everything at once,” says Rob Williams. “Start where you are. Track your spending. Pay off the expensive debt. And don’t wait.”
Is Net Worth Even the Right Metric?
Some experts caution against using net worth alone as a measurement of success, especially when housing skews the numbers.
“Most Americans aren’t in a position to handle an emergency, get laid off, or retire while maintaining their lifestyle,” said financial advisor Mitchell Kraus. In many cities, even putting 20% down on a home is out of reach for the average household.
It’s Not Too Late—Clarity Is Power
The good news? You don’t have to have it all figured out today. You just have to start.
“Knowing what you need to do,” Finger says, “can give you more comfort than not knowing.”
Whether you’re just entering the workforce or already thinking about retirement, building a roadmap can help you get closer to the financial future you want.
The Dream Is Big, But So Is the Opportunity
The gap between what Americans want and what they have is wide—but not impossible to bridge. Financial comfort is a moving target, but with small, consistent steps, it’s a target you can aim for.
Start with what you have. Build from where you are. And don’t wait for the “perfect” time—because your future self will thank you for starting today.
