Mass affluent individuals have between $100,000 and $1 million in liquid assets and an annual household income exceeding $75,000 a year.
They are one of the largest consumer segments in the country, making up roughly a quarter of the population.
What Is Mass Affluent?
Mass affluent refers to individuals in the largest group of affluent consumers in the nation. These households would be considered part of the middle class but have above-average income and an above-average amount of liquid assets, which are not tied up in land, houses or cars.
There is some overlap between the mass affluent and the upper middle class, but these two terms are not synonymous. The determining factor to classify someone as upper middle class is how much income they make. Whereas mass affluent people are generally defined not only by income but by their liquid assets.
Criteria To Be Considered Mass Affluent
The criteria to be considered mass affluent include the person’s income and amount of liquid assets. Individuals with mass affluence have liquid assets valued between $100,000 and $1,000,000.
Mass affluent individuals have an annual household income exceeding $75,000 a year. These are usually workers in white-collar careers with significant savings and retirement funds. They likely have a decent understanding of wealth management and personal finance.
In addition to net worth criteria, there are certain economic and demographic characteristics that can be associated with mass affluent people. Over 40% of mass affluent people in America are part of the baby boomer generation, according to data from Customer Communications Group.
Mass affluent people are more likely to be married, and many of them have post-graduate degrees and maintain retirement accounts. They are also differentiated from other wealth segments by their propensity to travel. Certified Financial Planner™ R.J. Weiss categorized mass affluent individuals by the lifestyle they can afford. “Mass affluent individuals are typically financially secure and able to afford a very comfortable lifestyle,” said Weiss, “but they’re not buying multi-million dollar homes or top-end cars.”
What’s the Difference Between Mass Affluent and High Net Worth?
The biggest difference between mass affluent and high-net-worth individuals is the amount of assets they’ve amassed. High-net-worth individuals have even more assets than the mass affluent.
A high-net-worth individual has over $1 million in liquid assets. Someone with at least $5 million in assets is classified as a very-high-net-worth individual, and those with at least $10 million in assets are ultra-high-net-worth individuals.
Once someone crosses the threshold of having a high net worth, they may be able to access special privileges from financial institutions. These privileges could include investing in private equity funds and opportunities to become a shareholder in promising startups.
How Many People Are Considered To Be Mass Affluent in the United States?
According to a recent study by Spectrem Group, there are 32.3 million mass affluent households in the United States.
This means that mass affluent households make up one of the larger wealth brackets in the country, comprising roughly 26% of the 123 million total U.S. households.
In contrast, households with a net worth greater than $1 million, represent roughly 10% of the country. The largest net worth bracket comprises households with a positive net worth under $100,000, roughly 65.2 million households. Finally, 13.4 million households in America have a negative net worth.
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Who Are Mass Affluent Individuals? Mass affluent individuals have between $100,000 and $1 million liquid assets with an annual household income above $75,000. While these individuals have less financial resources than high-net-worth individuals, they make up about 26% of America's population.
Both terms refer to people whose wealth or income is above the average, yet below the top. As opposed to households with above average incomes the mass affluent are also defined through liquid assets such as stocks, bonds, cash, and mutual funds.
To be considered mass affluent by income, one must make at least 50% more than the median household income of your surrounding area. Therefore, to be mass affluent, you must earn at least $112,000 year since the median household income is roughly $75,000 as of 2024.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Some common synonyms of affluent are opulent, rich, and wealthy. While all these words mean "having goods, property, and money in abundance," affluent suggests prosperity and an increasing wealth.
You know you're driving through an affluent neighborhood when you see large houses, perfect landscaping, and expensive cars. Use affluent to describe wealthy people or areas.
The criteria to be considered mass affluent include the person's income and amount of liquid assets. Individuals with mass affluence have liquid assets valued between $100,000 and $1,000,000.
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
Americans say you need a net worth of at least $2.5 million to feel wealthy, according to Charles Schwab's annual Modern Wealth Survey, which surveyed 1,000 Americans ages 21 to 75 in March 2024. That's up slightly from $2.2 million, compared with last year's survey results.
Who Are Mass Affluent Individuals? Mass affluent individuals have between $100,000 and $1 million liquid assets with an annual household income above $75,000. While these individuals have less financial resources than high-net-worth individuals, they make up about 26% of America's population.
Popular Approaches to Defining Consumer Market Segments
Generally, the mass market represents the lower- and middle-income segments, the mass affluent is the upper-end of the mass market and the wealthy are the high-income segments.
According to Schwab's 2022 Modern Wealth Survey, the average American thinks being rich means having a net worth of $2.2 million. However, wealth has no universal definition. Just as beauty is in the eye of the beholder, being rich depends on your personal definition and circ*mstances.
rich, wealthy, affluent, opulent mean having goods, property, and money in abundance. rich implies having more than enough to gratify normal needs or desires. wealthy stresses the possession of property and intrinsically valuable things.affluent suggests prosperity and an increasing wealth.
A high net worth individual (HNWI) refers to an individual with a net worth of a minimum of $1,000,000 in highly liquid assets, such as cash and investible assets. Individuals with less than $1,000,000 but more than $100,000 are called mass affluent investors.
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