A net worth of $5 million is considered very high by most objective measures, placing an individual or household in a highly affluent category both in Australia and the US. Whether it is "good" depends on your lifestyle, location, age, and financial goals.
In fact, reliable data suggests that households with $5 million or more in net worth represent a small fraction of the population. According to DQYDJ, in 2023, approximately 4.8 million American households had a net worth above $5 million, representing roughly 3.7% of all U.S. households.
$5 million is enough to retire comfortably for most. At 61, it provides $172,414 annually ($14,368 monthly) for 29 years. Retiring earlier, like at 40, reduces distributions to $100,000 annually ($8,333 monthly). Lifestyle and spending habits ultimately determine if it's sufficient.
New research from The Lottery Office says that for most Australians, even a $5 million lottery win would not be enough for them to consider retiring.
What Is Considered High-Net-Worth in Australia? In most professional circles, a high net worth individual is defined as someone with over $1 million AUD in investable assets, excluding the family home. Under the Corporations Act 2001 (s.
Generally, a liquid net worth of at least $1 million would make you a high net worth (HNW) individual. To reach a very high net worth status, you'd need a net worth of $5 million to $10 million. Individuals with a net worth of $30 million or more might qualify as ultra-high net worth.
“The proportion of wealth held in cash and deposits is lowest in Australia at just above 10 per cent, only half as much as in Switzerland, Singapore and the UK.” In US dollar terms, Australia counts 1.9 million millionaires and is ranked eighth in UBS' millionaire index.
A wealthy retiree in Australia is generally someone with substantial assets, often defined as having over $1 million in investable assets (excluding the family home) or a total net worth exceeding that, allowing for a very comfortable lifestyle well above basic needs, potentially generating $150,000+ annual income, though "wealthy" is relative, with many considering >$1M or a significant super balance as rich.
Around 80,000 Australians had over $2 million in superannuation as of 2019-2020 data, with estimates suggesting this number might be higher now due to asset growth, potentially affecting around 80,000 people with balances over $3 million by 2025. While most with high balances are older, some young individuals (under 30) also hold over $2 million in super.
The top ten financial mistakes most people make after retirement are:
Retiring with $5 million dollars is an exceptionally rare achievement. According to data from the Employee Benefit Research Institute, based on the Federal Reserve's Survey of Consumer Finances, a mere 0.1% of retirees have managed to accumulate over $5 million in their retirement accounts.
Can you live off the interest of $5 million dollars? Yes, it's possible to live off the interest or returns generated by $5 million, depending on your spending needs and investment strategy. For example, a 4% withdrawal rate would yield $200,000 annually before taxes.
Very-High-Net-Worth Individuals (VHNWIs): Individuals with liquid assets between $5 million and $30 million have what's known as a “very high net worth.” This level of wealth opens doors to exclusive financial opportunities, including private equity and venture capital investments.
For some, $5M provides lifelong security. For others, especially with high expenses or long retirements, continuing to save (or at least spending intentionally) is still smart. https://www.gobankingrates. com/retirement/planning/can-you-stop-saving-with-5 -million-retirement-nest-egg-experts-weigh-in/
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
The Association of Superannuation Funds of Australia's research, based on the latest data from the Australian Taxation Office during the 2022-23 period, found about 77,400 – or more than nine in 10 affected individuals – have super balances of more than $3 million but less than $10 million.
5. Set age-based retirement savings goals.
Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1. The Government Age Pension acts as a safety net to support the basic cost of living in retirement. However, it's still important to have a figure in mind as your ideal retirement savings goal.
There's no single correct amount to save for retirement. For example, a $500,000 nest egg may be a good amount for some retirees, while others may need more, depending on where they live and how many dependents they have. If you want to figure out what size your nest egg should be, a retirement calculator can help.
"Schwab Survey Reveals That Americans Think It Takes $2.5 Million To Be Considered Wealthy in 2024." Tax Foundation. "Summary of the Latest Federal Income Tax Data, 2024 Update." GoBankingRates.
Being considered "rich" in Australia varies, but generally, a net worth of $1 million or more in investable assets (excluding home/super) qualifies you as High-Net-Worth, while reaching the top 1% requires $7 million or more (for ages 41-64), with figures increasing significantly for the ultra-wealthy ($10M+ or $30M+), though public perception often sets a lower bar, sometimes around $1M total net worth or high income.
Per the Federal Reserve, the average age of a millionaire in the U.S. is 61. Americans in their 50s have an average net worth of around $1.3 million., according to Empower Personal Dashboard data in June 2025.
Based on current rates (November 2024), a $1 million annuity in conjunction with Age Pension payments would cover retirement expenses until past age 100 for a single person. At age 100 you would have around $500,000 in investment assets.