A huge number of millionaires in the US still don't see themselves as rich, study reveals

Being a millionaire is a big deal for a lot of Americans who aspire to get rich, but it may still not be enough once people reach that milestone. According to the Northwestern Mutual Planning & Progress Study, only 36% of the nation's millionaires consider themselves wealthy. Meanwhile, nearly half (49%) think they need better financial planning to retire comfortably and leave an inheritance for their family.

The study that draws on a Harris Poll survey of 4,626 Americans, including 969 people with household investable assets greater than $1 million, found that the majority of the nation's millionaires don't feel rich. At the same time, nearly half (47%) don't expect to leave an inheritance of a charitable gift as part of their estate plan. According to the UBS Global Wealth Report, the U.S. is home to nearly 24 million millionaires, which is more than any other country in the world.

“$1 million is a lot of money, but the data makes one thing crystal clear: money alone doesn’t create confidence—financial advice and financial plans do,” said John Roberts, chief field officer at Northwestern Mutual. He added that the findings may come as a surprise to the younger generation, who are eager to get a piece of the $90 trillion U.S. economy. He stressed that the numbers highlight the importance of generational wealth planning.

The study also highlighted the three burning questions that bother American millionaires. These include, "Is it possible I could outlive my savings?" "How will taxes impact me in retirement?", and "How can I plan for potential long-term care needs?" 

While most millionaires in the study didn't consider themselves "wealthy", the analysis found that they are still likely to report higher levels of financial discipline, confidence, and clarity. As per the study, about 74% of the millionaires are more likely to work with a financial advisor for wealth management and planning, which is twice as much as the general population, only 34% of whom are willing to do so. The millionaires also hope to retire two years earlier than those who don't plan.

While the millionaires may not feel they have enough to retire, Northwestern Mutual earlier reported that Americans can retire comfortably with $1.26 million in funds. This number was pegged at $2.3 million in the latest Charles Schwab Modern Wealth Survey in July, but if the goal is to merely be comfortable, Schwab found that $800,000 would suffice.

Thus, the anxiety that millionaires have may stem from psychological reasons rather than economic reasons. "People with that much money inevitably spend time with other people who are millionaires, and who have even more money than they do, and – just like the rest of us – compare themselves to others who have more,” Liz Windisch, a certified financial planner in Denver, told USA Today. 

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