Every year, the goal of achieving wealth seems to slip further out of reach for most people. Generation Z, the youngest generation to enter the labour market and become financially independent, is the one that best understands this new economic landscape.
Living comfortably costs more than ever. According to data from the “2025 Modern Wealth Survey” conducted by the consulting firm Charles Schwab among more than 2,200 Americans, to be considered wealthy, an American would need about £739,000, a figure well above the $778,000 needed in 2024 or the $624,000 needed in 2021 to live comfortably. This steady increase shows that financial stability is an increasingly difficult goal to achieve.
These figures refer to being financially well-off, but the threshold for being considered rich is moving further away from six figures every year, and with each passing year it becomes more difficult to achieve this status.
The wealth threshold is also rising. To be considered rich in the United States, it is no longer enough to have more than a million dollars. In fact, according to data from the study by Charles Schwab, you need £1.5 million to be considered wealthy. In 2021, you needed £1.2 million to achieve this status.
Although this figure represents a slight moderation from the £1.5 million required in 2024, it is still a very high bar for the majority of the population. This change reflects that the perception of wealth is dynamic and responds to both economic factors and social expectations. The amount of money needed to feel rich varies, but the general trend remains upward, driven by factors such as inflation, economic downturns, and increased tax pressure.
Beyond money: what does it mean to be rich? The survey also reveals that money is not the only factor in feeling rich. Forty-five per cent of respondents said that money was nothing without personal happiness. In the end, the popular saying that money does not bring happiness seems to be true.
In addition, 37 per cent of respondents said that the feeling of wealth must be accompanied by physical health, and 32 per cent highlighted the importance of mental health to fully enjoy their wealth.
When asked who already considered themselves millionaires, 83% felt rich in terms of relationships and personal happiness, while 81% considered that an important part of their wealth was having enough free time to enjoy it.
Generational differences with regard to money. The perception of what it means to be wealthy varies greatly depending on the generation you ask. For young people in Generation Z, $329,000 is enough to feel financially comfortable, while for baby boomers the threshold rises to $943,000. Millennials consider themselves wealthy with $847,000 and Generation X with $783,000.
Generation Z, accustomed to austerity, is the generation that demonstrates the best planning of its financial goals. Thirty-nine percent of these young people have an established financial plan, and 43% of them have at least thought about it. In contrast, 45% of baby boomers have not even thought about it, and only 26% have planned for their financial future.
