Determining the percentage of Americans who have $1 million or more in savings can be a challenging task. There are several factors to consider, including income level, age, and location. Additionally, it is essential to define what is meant by “savings.” Is it only liquid assets, or does it include assets such as property, stocks, and retirement accounts?
According to a 2020 survey by Bank of America, only 15% of Americans have $100,000 or more in savings. This is a far cry from the $1 million threshold. The survey also found that 28% of Americans have less than $1,000 in savings, and 23% have no savings at all.
Another study conducted by GOBankingRates in 2021 found that only 11% of Americans have $1 million or more in savings. The study surveyed 2,500 respondents, and those who reported having $1 million or more in savings were more likely to be older, male, and have a higher income level. Specifically, 15.8% of men reported having $1 million or more in savings, while only 7.2% of women did. Additionally, 21.3% of respondents aged 65 and older reported having $1 million or more in savings, while only 4.4% of those aged 18-24 did.
However, it is important to note that these surveys only capture a portion of the population, and they may not accurately reflect the actual percentage of Americans with $1 million or more in savings. For example, they do not include people who do not have bank accounts or who do not participate in surveys.
Another way to estimate the percentage of Americans with $1 million or more in savings is to look at the number of millionaires in the country. According to a report by Credit Suisse, there were 19.8 million millionaires in the United States in 2020, which represents approximately 6% of the total population. However, not all of these millionaires may have $1 million or more in liquid assets, as their net worth may include other assets such as property and stocks.
It is also worth considering the distribution of wealth in the United States. According to a 2021 report by the Institute for Policy Studies, the top 1% of households in the United States hold more wealth than the bottom 90% combined. This means that a significant portion of the population has little to no savings and may be struggling to make ends meet.
Furthermore, the cost of living varies greatly across the United States, with some areas being much more expensive than others. This can affect the percentage of people who have $1 million or more in savings, as it may be more difficult to save money in high-cost areas. For example, a person living in New York City may need to earn significantly more than a person living in a rural area to maintain the same standard of living.
In conclusion, estimating the percentage of Americans with $1 million or more in savings is challenging, and the exact number may vary depending on various factors. However, surveys and reports suggest that the percentage is relatively low, with estimates ranging from 6% to 11%. It is also essential to consider the distribution of wealth in the country and the varying cost of living across different regions.
