Latest news with #SurveyofConsumerFinances
Time of India
28-07-2025
- Business
- Time of India
Survey reveals the amount of money you need to be financially 'comfortable' in the US
Image credits: Getty Images For those planning to move to the US in the future, and those who have recently made the big move, finances are a significant task to cross off the list. No amount of advice and research can answer your query of just how much money you would need to have a 'comfortable' life in the United States. According to a news survey, it's less than most people guessed. The new Modern Wealth Survey by Charles Schwab revealed that you need even less than $1 million to live comfortably in the US. Numerous surveys revealed that being wealthy in 2025 means having a net worth of over $1 million. In the Schwab survey, released this month, consumers set the bar higher at $2.3 million. But what if you just want to live in comfort and not wealth? Then, the amount you need is $839,000. An exhaling low from the past four years, where the amount was between $624,000 - $1 million. How do Americans define wealth and comfort? Image credits: Getty Images While Rob Williams, managing director of financial planning at Schwab, defined it as the difference between needs, wants and wishes, for the participants, the definition was free to explore. The survey asked the respondents to define what wealthy meant to them, and these are the most-cited factors in descending order: Happiness (45% cited it) 'Amount of money I have' (44%) Physical health (37%) Mental health (32%) 'Quality of my relationships' (24%) Life experiences (24%) Accomplishments (20%) Amount of free time (18%) Material possessions (17%) Is financial comfort a reality or a dream? Only 11% of consumers said they believe they are wealthy now, with 24% stating they are on their way to becoming wealthy. Gen-Z and millennials were the most aspirational about wealth, with more than two-fifths of both groups reporting being either wealthy or on the track to become so. Not only wealth, but even financial comfort seems to be a dream in America right now. Only 20% responders reported feeling comfortable right now, and 28% said they are on the way to achieving the status. However, even here, the Gen-Z and millennial groups seemed to be more optimistic, with more than half of each saying they are financially comfortable or getting there. How many Americans are wealthy? Image credits: Getty Images The net worth of $839,000, which is the cut-off for financial comfort in America, falls below the average net worth for American families in 2022, which was approximately $1.1 million, as per the federal Survey of Consumer Finances. However, America also has a large number of super-wealthy people, making the median household net worth just $192,700. Thus, even being wealthy might not be enough in America.
Yahoo
24-07-2025
- Business
- Yahoo
People Think They Need $4 Million To Retire Comfortably — Can You Guess How Many Really Have That Much?
You know how a million dollars used to sound like the ultimate goal? These days, it barely turns heads — especially when it comes to retirement. Now, $4 million is being tossed around as the new benchmark for a "comfortable" retirement. But the reality is, very few Americans are anywhere near that kind of wealth. According to Federal Reserve data, to be in the top 5% of U.S. households, you'd need about $1.17 million in total net worth. The top 2% starts around $2.7 million — and to break into the top 1%, you'd need a staggering $11.6 million. That means someone with $4 million in net worth falls comfortably above the top 2%, but still far from the 1% threshold. Based on this range, it's fair to estimate that only about 1.3% to 1.5% of U.S. households have $4 million or more in total net worth. Don't Miss: Be part of the breakthrough that could replace plastic as we know it— $100k+ in investable assets? – no cost, no obligation. And remember — that includes everything: home equity, retirement accounts, business assets, and personal property. It's not what's sitting in your 401(k). So when surveys suggest Americans need $4 million just to retire, they're aiming higher than nearly 99% of the country ever reaches. So how did $4 million become the retirement magic number when so few people have it in any form? $4 Million Retirement Myth A 2023 New York Life survey found that the average American worker now believes they'll need $4.3 million to retire comfortably. That's not just the wealthy talking — that's everyday people. And it reflects a growing anxiety about the cost of living, inflation, healthcare, and longevity. The problem? Very few people are even close. According to the Federal Reserve's Survey of Consumer Finances, the average retirement savings among Americans is about $334,000 — but the median is far lower, at just $86,900. That paints a much more sobering picture of where most people actually stand. Even having $1 million saved for retirement puts you in the top 3.2% of savers. So the idea that $4 million is "normal" or "necessary" might be more myth than fact. Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — Most People Don't Know What They'll Need The confusion is understandable. Most people don't actually know how much they'll need — or when they'll retire. You might have a timeline in mind, but life doesn't always follow the plan. In fact, 58% of workers end up retiring earlier than expected, often due to unforeseen circumstances, according to research from the Transamerica Center for Retirement Studies in collaboration with the Transamerica Institute. Part of the issue is the heavy reliance on retirement calculators — those sleek tools many people plug their age and income into hoping for clarity. But many of these calculators are built by investment firms that have a vested interest in encouraging people to save more and invest more. They often assume luxury-level lifestyles, long retirements, and no other income sources like Social Security. That means these tools can overshoot what's actually needed — leaving users discouraged and feeling like they're impossibly behind. What Do You Really Need? Truthfully, the amount you'll need to retire depends on a mix of personal factors: Where you plan to live Your desired lifestyle Healthcare needs How long you plan to work Other income sources like pensions or Social Security Many financial experts agree that a more realistic retirement target for most Americans is somewhere between $1 million and $2 million — not $4 million. That's still a hefty number, but far more achievable over time, especially when combined with other income sources or downsizing let's not forget what Warren Buffett famously said: "If you don't find a way to make money while you sleep, you will work until you die." Passive income — through dividends, rental property, or even part-time work — can significantly stretch retirement dollars. So What's the Move? If $4 million feels out of reach, you're not alone — and you're not doomed. The key is consistency over perfection. Saving regularly, investing smartly, and avoiding lifestyle inflation can go a long way. And if you're not sure where to start, talking with a financial advisor can help put your actual retirement needs into perspective — not some one-size-fits-all online projection. Because at the end of the day, it's not about hitting an arbitrary number. It's about being able to retire on your terms — and live well doing it. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article People Think They Need $4 Million To Retire Comfortably — Can You Guess How Many Really Have That Much? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Are You Secretly Rich? Here's What The Top 10% of People In Their 50s Actually Have
As you gear up for retirement—or maybe you're one of those people who plan to never retire—there's one question that might quietly linger in the back of your mind: Am I doing better than most? While comparison is the thief of joy or so they say, but it can also be a practical tool—especially when money is still taboo to talk about in everyday life. If you've ever wondered how your finances stack up next to your peers, here's your chance to peek behind the curtain. Don't Miss: Maximize saving for your retirement and cut down on taxes: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. The best data we have on American household wealth comes from the Federal Reserve's Survey of Consumer Finances. Every three years, the central bank gathers detailed information on everything from how much people have in their retirement accounts to how much they owe on their credit cards. It's a goldmine of financial transparency—spanning income, assets, debt, and demographics. The most recent survey covers data from the end of 2022, and yes, plenty has changed since then. The markets have rallied. Home values have jumped. But until the next release in 2026, this is the most current and comprehensive snapshot of where American households stand. According to analysis of that data, the top 10% of households aged 50 to 59 had a net worth of at least $2,629,060. The median household in that age bracket? Around $285,000—a massive gap that underscores just how far ahead the wealthiest 10% really are. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — It's also worth noting: many of those high-net-worth households still carry debt. In fact, the average household in the top 10% has about $375,000 in debt, largely tied to mortgages. And that's not necessarily a red flag—especially if the mortgage comes with a low fixed rate. Paying it off aggressively can actually limit your liquidity. In most cases, smart investing beats rapid repayment, and having flexible access to cash may matter more than being debt-free. Of course, "rich" is relative. For one person, being wealthy might mean having a paid-off house and a modest retirement fund. For another, it might mean leasing luxury cars and flying first class to Europe. Lifestyle choices, spending habits, and risk tolerance all shape what wealth looks like—and how much you need to feel secure. So if you're already among the richest 10%, that's something to celebrate. And if you're still building? Keep going. Some people take the slow and steady route. Others swing big on investments or side hustles. At the end of the day, it's your life, your money, and your definition of financial success. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Are You Secretly Rich? Here's What The Top 10% of People In Their 50s Actually Have originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Time Business News
24-06-2025
- Business
- Time Business News
What's the Typical Inheritance American Retirees Pass On?
When planning for retirement, many Americans think not only about their own financial security but also about the legacy they'll leave behind. A common question arises: how much do retirees typically pass on to their heirs? Recent data sheds light on the average inheritance left by American retirees, offering insights for both those planning their estates and those expecting to receive an inheritance. According to a 2023 analysis by the Federal Reserve's Survey of Consumer Finances, the average inheritance received by American households is approximately $84,000. However, this figure can vary significantly depending on factors like wealth, age, and family structure. For retirees specifically, the amount they leave behind often depends on their savings, investments, and real estate holdings. Wealthier households tend to leave larger inheritances. For example, the top 10% of households by net worth leave an average inheritance of over $500,000, while those in the middle 50% pass down closer to $50,000. These disparities reflect the uneven distribution of wealth in the U.S., where assets like homes, retirement accounts, and stock portfolios play a significant role in estate planning. Inheritances often come later in life than many expect. The average age for receiving an inheritance is around 40, meaning most heirs are well into adulthood when they receive these funds. This timing can influence how the money is used—some may invest it for retirement, while others use it to pay off debts, fund education, or purchase a home. For retirees, deciding when and how to distribute assets is a key consideration. Many choose to gift money during their lifetime, taking advantage of tax benefits like the annual gift tax exclusion ($18,000 per recipient in 2025). Others opt to leave assets through wills or trusts, ensuring their wishes are followed after they're gone. For many American retirees, their home is their largest asset. The value of real estate often makes up a significant portion of an inheritance, especially in high-cost areas. However, passing down property can come with challenges, such as capital gains taxes or disagreements among heirs about whether to sell or keep the home. Retirees planning their estates should consider consulting financial advisors to navigate these complexities. Strategies like setting up a trust or transferring property before death can help minimize tax burdens and streamline the process for heirs. The average inheritance of $84,000 can make a meaningful difference for heirs, but it's often less than many expect. For retirees, careful estate planning is crucial to maximize what they leave behind. This includes updating wills, designating beneficiaries for retirement accounts, and considering life insurance policies to supplement inheritances. For those expecting an inheritance, it's wise to avoid relying on it for immediate financial needs. Instead, treat it as a potential boost for long-term goals like retirement savings or debt reduction. Financial experts recommend discussing estate plans openly with family members to avoid surprises and ensure everyone's expectations are aligned. As wealth continues to transfer between generations, the landscape of inheritances in the U.S. is evolving. Rising home values and growing retirement account balances may increase the size of future inheritances, but economic factors like inflation and healthcare costs could offset these gains for retirees. Whether you're a retiree planning your legacy or an heir anticipating an inheritance, understanding the typical amounts and their implications can guide better financial decisions. By preparing thoughtfully, both generations can make the most of this important transfer of wealth. TIME BUSINESS NEWS
Yahoo
19-06-2025
- Business
- Yahoo
How Much Should the Average Middle-Class Gen Zer Have in Savings?
Gen Z hasn't had the smoothest entry into adulthood, especially with the COVID-19 pandemic, inflation, rising homeownership costs and political uncertainty. And with so much going on in the world, you'll want to have a financial cushion to fall back on just in case. But exactly how much should you have in savings? Read More: Consider This: Here's what's realistic for a middle-class Gen Zer when it comes to savings, and how to build a solid financial foundation without feeling overwhelmed. When people talk about savings, they usually mean more than just a standard bank account. It can include: Emergency funds Retirement savings, like a Roth IRA or 401(k) Short-term savings for things like travel, moving, or a new laptop Brokerage accounts Depending on your income, lifestyle, and goals, the right mix will look different for everyone. But if you're a middle-class Gen Zer who's earning somewhere in the $40,000 to $60,000 range, here's what to aim for. Check Out: Your savings should ideally cover a few different areas of your life: emergencies, long-term goals like retirement and short-term plans you're working toward right now. Ideally, you'll want to have three to six months' worth of expenses in a high-yield savings account. In other words, if your monthly costs add up to $2,000, you'd be aiming for somewhere between $6,000 and $12,000. Note that your emergency savings are intended for emergencies only, like car repairs, medical bills, or sudden job loss. Avoid dipping into it for things that aren't urgent. Financial planners often suggest saving around 15% of your income for retirement, but if you're just starting out in your career and don't have much to save, even 5% is a great start. A common benchmark is to have your annual salary saved for retirement by the time you turn 30. So if you make $100,000 a year, the goal is to have at least that amount saved up. That includes investment growth too, not just your personal contributions. This is for things you know are coming up soon (like moving into your own place, buying a car, or taking a trip). You don't need a specific number here, but it helps to set goals and work backward. If you want to take a $1,500 trip in six months, saving $250 a month gets you there. The median net worth of people under 35 (including Gen Z and some millennials) is around $39,000, according to the 2023 Survey of Consumer Finances. That number doesn't tell the whole story, though, since many Gen Zers have barely started their career, and some are still in school. For example, if you're under 27 and still trying to figure out what you want to do, you may not have $39,000 lying around. Though it's helpful to have an idea of what the average is, it's not healthy to compare yourself to someone else who's on a different journey than you. Focus on creating a savings plan that makes sense for where you are right now. If you don't have much saved, you're actually in the same boat as a lot of people your age. Don't panic. The most important thing is to start now, even if it's small. Putting away $25 a week adds up to $1,300 a year. That's enough to build your first emergency cushion or start a Roth IRA. Also, take advantage of anything that gives you a head start. If your job offers a 401(k) match, try to contribute enough to get the full match because it's essentially free money. You don't have to make big sacrifices to build savings on a middle-class income. A few simple habits go a long way: Automate transfers to savings Use a budgeting app to spot areas where you're overspending Negotiate down your high-interest debt Cancel unnecessary subscriptions Dine in instead of eating out There's no one magic number for how much a Gen Zer should have saved. But if you're aiming for a few thousand in emergency savings, contributing regularly to retirement, and setting aside money for things you care about, you're doing just fine. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on How Much Should the Average Middle-Class Gen Zer Have in Savings? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
