Wealth varies quite a bit in the United States, and it's no secret that much of it is concentrated at the top. Even knowing that, the amount of wealth of the richest families could be surprising.
With the release of the Federal Reserve's 2022 Survey of Consumer Finances, there's new data available on the net worth of families in the top 10%. Net worth is calculated by adding up a family's assets and subtracting any debts. Here's the latest data.
The net worth of the top 10%
The top 10% of families have a median net worth of $3.79 million. The median net worth for the United States as a whole, on the other hand, is $192,900. That means families in the top 10% have nearly 20 times as much as the typical U.S. family.
On a positive note, overall net worth has been increasing. During the previous Survey of Consumer Finances in 2019, the median U.S. net worth was $141,100, so it has gone up by 37%. That's actually a larger increase than the median net worth for the top 10%, which went up by 26% from 2019 to 2022.
In fact, all the groups analyzed in the survey saw positive changes in their net worths. That includes every income group and age range. The wealthiest Americans certainly have much, much more. But anybody can increase their net worth, and that's a good goal to set for yourself. As a general rule, if your net worth is going up, that's a sign you're doing the right things with your personal finances.
What are the keys to a high net worth?
Reaching a high net worth, such as $1 million or more, is a common financial goal. While there's more than one way to get there, the recent survey data can give us an idea of what tends to work best for building net worth. Here are the common characteristics of people with higher net worths:
- They earn large incomes. Net worth rises significantly in every income percentile. The median net worth is $14,000 for earners in the bottom 20%, compared to $2.56 million for those in the top 10%
- They have higher levels of education. People with a college degree have a median net worth of $464,600. That's more than four times as much as high school graduates ($106,800) and more than 12 times as much as people with no high school diploma ($38,100).
- They're homeowners. Homeowners have a median net worth of $396,200, compared to $10,400 for renters.
- They're older. Net worth rises for older Americans. Those younger than 35 have a median net worth of $39,000. It peaks at $409,900 for those between 65 and 74.
This doesn't mean you need to fulfill all those requirements to have a high net worth. It's certainly possible to build wealth with an average income, without a college education, and as a renter. But these characteristics show some strategies that have worked for many Americans, so they're worth considering.
If you're trying to build your net worth, a great place to start is with your income. As you earn more, it becomes easier to save more. See if there are ways to advance and make more money at your current job, or if you could increase your earnings with a new job or a side hustle.
The other key ingredient is where you put your money. As the data shows, many people build wealth through their homes, but that's not your only option. Investing in stocks is another way to build wealth. Even if you're a homeowner, it's still a good idea to buy stocks, as well. They offer excellent growth potential, with the average stock market return being about 10% per year. They're also more liquid than owning a home, as you can buy and sell stocks quickly with online stock brokers.
Building your net worth ultimately comes down to how much you earn versus how much you spend. If you consistently save and invest a portion of your income, you'll see positive results.
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FAQs
The top 10% of U.S. families have a median net worth of $3.79 million. That's nearly 20 times as much as the median net worth nationwide, which is $192,900. People with a high net worth tend to earn large incomes, have a higher level of education, and own their homes.
What is the net worth of the top 10 percent? ›
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
How rich do you have to be to be in the top 10%? ›
What are the annual wages of top earners?
| Bracket | Average annual wages |
|---|
| Top 0.1% | $3,212,486 |
| Top 1% | $823,763 |
| Top 5% | $342,987 |
| Top 10% | $173,176 |
Apr 30, 2024
Your net worth is the value of all of your assets, minus the total of all of your liabilities. Put another way, it is what you own minus what you owe. If you owe more than you own, you have a negative net worth. If you own more than you owe you will have a positive net worth.
What estimated percentage of the total net worth do the top 10% of families own in the United States? ›
Comparing the wealth of the top ten percent to that of the bottom fifty percent. In the third quarter of 2023, the top ten percent of households, which includes around 13.19 million families, owned roughly two-thirds of all wealth in the US.
What is top 5% wealth net worth in US? ›
The most recent data from the Fed's Survey of Consumer Finances took a snapshot of the American public at the end of 2022. At that point, a net worth of $3,795,000 was enough to put you in the top 5% of all American households. If that number has your head spinning, there are some important details you should consider.
What salary is considered wealthy? ›
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.
What is the net worth of the top 10%? ›
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- People with the top 1% of net worth in the U.S. in 2025 will have $11.6 million in net worth.
- The top 2% will have a net worth of $2.7 million.
- The top 5% will have $1.17 million.
- The top 10% will have $970,900.
- The top 50% will have $585,000.
You meet this definition if you say YES to something in ANY of the 3 categories below:
- You are 18-25, your net financial wealth is $50,000 or more.
- You are 25-29, your net financial wealth is $100,000 or more.
- You are 30-35, your net financial wealth is $200,000 or more.
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
Yes. The value of your 401(k) account is a part of your net worth and should be included in your net worth. Like anything else of financial value, the vested balance of your 401(k) account — or any retirement account, for that matter — is considered an asset.
What net worth is wealthy? ›
Upper-Middle Class (Next 20%): The median net worth is $201,800. This group often enjoys more discretionary income and benefits from long-term investments. Wealthy (Top 20%): The median net worth is $608,900. This group often represents older individuals who have accumulated significant savings and investments.
What is the average net worth of a United States citizen? ›
Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
Am I in the top 10 percent net worth? ›
Here's the net worth that puts you in the top 10%
| Age Group* | Net Worth of 90th Percentile |
|---|
| 18-29 | $281,550 |
| 30-39 | $711,400 |
| 40-49 | $1,313,700 |
| 50-59 | $2,629,060 |
2 more rowsMay 25, 2024
The top 10% of household incomes starts at $191,406, the top 5% at $290,406, and the top 1% at $867,436. Those are the nationwide numbers, but they also vary considerably if you account for other factors, such as age or location. Income is a key part of personal finance, but it's not all that matters.
What net worth is considered upper class? ›
The upper class has an average net worth of $793,120 to $2.65 million, while the lower class has $16,900. The middle class ranges from $58,550 to $300,800. You can grow your net worth by saving and investing consistently, investing in the stock market, and being careful about taking on debt.
What percentile is a $3 million net worth? ›
The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury.
How much do the wealthiest 10% earn? ›
The top 10% of households have an average equivalised disposable income of £70,900 per year while the bottom 10% have an average of £10,600. More details about how these data have been equivalised are available.
What percentage of retirees have $3 million dollars? ›
Specifically, those with over $1 million in retirement accounts are in the top 3% of retirees. The Employee Benefit Research Institute (EBRI) estimates that 3.2% of retirees have over $1 million, and a mere 0.1% have $5 million or more, based on data from the Federal Reserve Survey of Consumer Finances.
How much do the richest 10% own? ›
Based on this estimate, the richest 10 percent of U.S. households own roughly $42.7 trillion in stock market wealth, with the richest 1 percent owning $25 trillion. The bottom half of U.S. households own less than half a trillion dollars in stock market wealth.
