The inheritance for the top 1% in the U.S. is vastly higher than other groups, with recent data showing average received amounts around $719,000, and expected future inheritances even higher (around $940,000+), contributing significantly to wealth concentration, with these families controlling a disproportionate share of national wealth. This intergenerational wealth transfer, including direct inheritances and advantages like social networks, concentrates wealth at the top, far exceeding the much smaller amounts received by the middle and lower classes, according to Federal Reserve Board and Yahoo Finance data from the Survey of Consumer Finances (SCF).
Average Inheritance in the U.S.
The average for the wealthiest 1% of individuals surveyed was $719,000, while the average for the bottom 50% was only $9,700.
Here's how that 2025 breakdown looks from Kiplinger's source: Top 1%: $11.6 million. Top 2%: $2.7 million. Top 5%: $1.17 million.
Only 3% inherited over 1 mil.
However, the median net worth of 1% households is estimated to be closer to $13 million; the average is much higher due to the ultra-wealthy skewing results upward.
Achieving a $2 million nest egg for retirement is relatively uncommon among Americans. According to the Employee Benefit Research Institute, less than 2% of households have $2 million or more saved for retirement.
Key Takeaways
Top earners across the United States earn nearly least six figures, with an average income of over $99,971 for those in the top 10% in 2022. Earners in the top 1% need to make $1 million annually in states like California, Connecticut, Massachusetts, New Jersey, and Washington.
$1 Million in Liquid Assets
“Within the financial industry, for example, we determine someone who is 'high-net-worth' to be rich,” said Tree. “This is the level at which people usually need specialist personal wealth management services, and is the label given when an individual acquires $1 million in liquid assets.”
Only 3.2% of retirees have $1 million in retirement accounts vs. about 2.6% of Americans in general. The average retirement savings for households aged 65-74 is $609,000, while the median is only about $200,000. The number of "401(k) millionaires" in America reached a record of about 497,000 last year.
Your 40s: A Strategic Consideration
By the time you reach age 40, prevailing wisdom says you should have a net worth equal to about twice your annual salary. Hopefully, you climbed the salary ladder a bit in your 30s, too.
Assuming long-term market returns stay more or less the same, the Rule of 72 tells us that you should be able to double your money every 7.2 years. So, after 7.2 years have passed, you'll have $200,000; after 14.4 years, $400,000; after 21.6 years, $800,000; and after 28.8 years, $1.6 million.
Interestingly, the 90th percentile is pretty flat, around $2.5M to $3M, from one's early 50s to one's 80s. The 95th is slightly less flat, with a peak slightly under $7M in one's late 60s; while the 99th percentile rises sharply with age until peaking over $22M in one's late 60s, from which point it mostly drops.
Elon Musk on track to become first trillionaire.
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.
Different Types of Inheritance
Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.
Yes, you can likely retire at 70 with $800,000, but it depends heavily on your annual spending, investment returns, and eligibility for government support like the Age Pension, potentially supporting a modest to comfortable lifestyle, though a very high-spending one might require more capital, according to wealthlab.com.au, Toro Wealth and Frontier Financial Group. Using the "4% Rule", $800,000 could provide around $32,000/year initially, but factoring in the Age Pension and lower expenses (like no mortgage/work costs) can make it stretch further, possibly supporting a single person's $44k-$50k/year needs.
Typically the criterion is that the person's financial assets (excluding their primary residence) are valued over US$1 million. A secondary level, a very-high-net-worth individual (VHNWI, ), is someone with at least US$5 million in investable assets.
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
For decades, Forbes has assessed his wealth, currently estimating it at $5.1 billion as of early June 2025. Meanwhile, Bloomberg estimated his wealth at $7.08 billion in January 2025. After the early 2025 launch of $Trump, Trump's own cryptocurrency, Axios temporarily estimated his net worth to be $58 billion.
According to a survey from Charles Schwab, Americans believe an average net worth of $2.3 million is necessary to be considered rich. However, for most people, being rich is relative to their situation.
More than a million people in the United States earn $500,000 or more, and they might be closer to home than you think.
Focusing too much on a single asset or sector. Neglecting tax-efficient strategies. A lack of comprehensive estate planning. Not partnering with a high-net-worth wealth management firm.
The threshold to be in the top 10% of U.S. households by net worth grew from about $1.3 million to roughly $1.8 million over the last five years, largely due to rising stock and home values, according to a recent Visa analysis of 2024 U.S. Census Bureau survey data.