According to Charles Schwab’s latest Modern Wealth Survey, the line between being financially comfortable and being wealthy is wider than ever — nearly $1.5 million wide, to be exact.
In the 2025 edition of Schwab’s annual report, Americans say it now takes a net worth of $839,000 to feel financially secure — far below the $2.3 million they say defines true wealth.
Comfort vs. Wealth: A Matter of Needs vs. Wishes
While Schwab didn’t define "wealth" or "comfort" for respondents, the distinctions came through clearly. Rob Williams, Schwab’s managing director of financial planning, says it comes down to this:
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Comfort means being able to meet your needs and wants: covering your mortgage, medical bills, saving for retirement, and avoiding the paycheck-to-paycheck grind.
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Wealth, on the other hand, includes the freedom to fulfill wishes — like retiring early, traveling freely, or simply having more control over how you spend your time.
“I think of wealth as, ‘I have a lot more choices in how I use my time,’” said Williams.
What Americans Say Wealth Really Means
Schwab also asked respondents what “wealthy” means to them — and the answers went beyond dollar signs. The most common definitions included:
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Happiness (45%)
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Amount of money owned (44%)
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Physical health (37%)
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Mental health (32%)
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Quality of relationships (24%)
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Life experiences (24%)
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Personal accomplishments (20%)
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Free time (18%)
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Material possessions (17%)
Is Comfort Still Out of Reach?
Despite defining financial comfort at $839,000, only 20% of respondents say they feel financially comfortable today. Another 28% believe they’re on track to get there.
When it comes to wealth, only 11% believe they’ve achieved it — although younger generations are much more optimistic. Over 40% of Gen Z and millennials say they are already wealthy or on their way.
The survey, conducted in April and May, included 2,200 U.S. adults from various age groups and backgrounds.
The Reality Behind the Numbers
Interestingly, the $839,000 comfort threshold is below the average U.S. household net worth of $1.1 million (as of 2022). But that figure is skewed by the ultra-rich. A more telling statistic: the median net worth — the actual midpoint — is just $192,700.
That paints a different picture, one that financial planner Lili Vasileff says is rooted in peace of mind more than a specific dollar figure.
“Comfortable, to me, means I don’t live paycheck to paycheck. I can cover my bills, I’ve got an emergency fund, and I’m progressing toward my financial goals,” she said.
Wealth, Vasileff adds, is about financial freedom: not needing to touch savings, leaving a legacy, and enjoying a higher quality of life.
But even $800,000 isn’t a guarantee — it depends on liquidity, investments, and how much is actually available to spend.
What Financial Comfort Really Looks Like
Robert Brokamp, senior adviser at The Motley Fool, echoes the federal Consumer Financial Protection Bureau’s view of financial wellness, which includes:
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Control over daily and monthly finances
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Ability to absorb financial shocks
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Progress toward financial goals
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Freedom to make life-enriching choices
“If you meet those four criteria, you’re comfortable,” said Brokamp.
Why $2.3 Million Now Equals “Wealthy”
Schwab survey respondents continue to push the "wealthy" label closer to the $2 million mark — from $2.2 million in 2022 and 2023, to $2.5 million in 2024, and now $2.3 million in 2025.
Why the rising bar?
Brokamp suggests it's because being a millionaire no longer feels exceptional.
“A millionaire is comfortable,” he said. “But a multimillionaire — that’s wealthy.”