More Americans Become Millionaires, But Feel Less Wealthy

Rising costs have eroded the purchasing power of $1 million, leaving many new millionaires feeling financially stable but not lavishly wealthy.

Apr. 13, 2026 at 5:21pm

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An extreme close-up of heavy, industrial banking machinery and objects like gears, levers, and vaults, conveying a sense of financial security and institutional wealth without using literal money or currency.As the number of American millionaires grows, the true purchasing power of $1 million has eroded, leaving many feeling financially stable but not lavishly wealthy.Los Angeles Today

The number of American millionaires has grown significantly in recent years, but many of them say they don't feel truly wealthy due to the rising costs of living. Data shows that $1 million today has the same purchasing power as about $480,000 did 30 years ago, making it harder for millionaires to live lavishly. Most new millionaires say they feel financially stable and prepared for emergencies, but not wealthy enough to retire early or live extravagantly.

Why it matters

The growing number of millionaires, coupled with their feeling of being less wealthy, highlights the widening gap between the top earners and the rest of the population. While high-income families have seen their wealth grow through rising home values and stock prices, lower- and middle-income Americans are struggling with the increased costs of everyday expenses. This dynamic has significant implications for economic inequality and the ability of the middle class to build wealth.

The details

The Bureau of Labor Statistics data shows that $1 million today has the same purchasing power as about $480,000 did 30 years ago. This means that $2.1 million today is equivalent to what $1 million was worth a generation ago. As a result, many new millionaires say they feel financially stable but not wealthy enough to live lavishly or retire early. Only about 4-6% of millionaires' wealth is readily available as cash, with much of it tied up in retirement accounts and real estate. The pandemic has further exacerbated the wealth gap, as high-income families have benefited from rising home values and stock prices while lower- and middle-income Americans struggle with increased costs of living.

  • In 1989, retirement made up just 7% of millionaire wealth. By 2022, that share had more than tripled.
  • Mortgage rates have risen dramatically since the pandemic, hovering near 7% for much of the past three years, making it more difficult for many to build wealth through homeownership.

The players

Nathan Winklepleck

A 36-year-old financial adviser with Donaldson Capital Management near Indianapolis who recently passed the millionaire threshold with his wife.

Keith Messinger

A retired civil engineer in Lexington, Kentucky, and his wife, a former teacher, who recently became millionaires after 25 years of aggressively putting money toward their retirement account.

Megan Gorman

The managing partner at Chequers Financial Management, who works with high-net-worth clients.

Mischa Fisher

The chief economist at Zillow.

Marvin Xu

A 27-year-old software engineer in Seattle who crossed the million-dollar threshold last year.

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What they’re saying

“It's a milestone, but having a million dollars doesn't mean you're super wealthy anymore. It's not quite what it used to be in terms of rarefied status.”

— Nathan Winklepleck, Financial Adviser

“I looked up at 42, and I've got $0 in my retirement plan. I said, 'Well, the million-dollar boat has sailed. That's no longer reachable.'”

— Keith Messinger, Retired Civil Engineer

“Even wealthy people never feel completely at rest. There is always that concern: Am I going to be okay?”

— Megan Gorman, Managing Partner, Chequers Financial Management

“It's a really nice milestone. But of course a million dollars then isn't what it is now. I don't have the $1 million my dad was talking about all those years ago.”

— Marvin Xu, Software Engineer

What’s next

As the number of millionaires continues to grow, economists and policymakers will likely continue to study the implications of this trend on economic inequality and the ability of the middle class to build wealth. Potential areas of focus could include the impact of rising costs on the purchasing power of $1 million, the role of homeownership in wealth-building, and strategies to help lower- and middle-income Americans achieve greater financial security.

The takeaway

The rise in the number of American millionaires, coupled with their feeling of being less wealthy, underscores the widening gap between the top earners and the rest of the population. While high-income families have seen their wealth grow, the purchasing power of $1 million has eroded, leaving many new millionaires feeling financially stable but not lavishly wealthy. This dynamic highlights the challenges facing the middle class in building wealth and the need for policies that address economic inequality.