Is $1 Million the New Middle Class? Why Millionaires Don’t Feel Rich Anymore

Reaching a million dollars once symbolized success. Today, it feels more like a milestone than a finish line. Many who achieve it still question their financial security, realizing that wealth is no longer just about the number in a bank account.

Charles Chaffin, co-founder of the Financial Psychology Institute, explains that being rich depends more on perception than digits. “Wealth is a subjective experience,” he notes, highlighting that mindset often defines whether someone feels prosperous or anxious about their finances.

When Money Fails to Bring Peace

Freepik | Despite their wealth, a majority of millionaires surveyed don’t feel rich and worry about money.

Surprisingly, only about a third of millionaires actually feel rich. According to a survey by Northwestern Mutual, most still worry about money despite crossing the million-dollar mark.

Chaffin attributes this to what he calls money vigilance, a constant watch over spending, saving, and investing. People with this mindset track every dollar, fearing loss more than they enjoy success. While vigilance can encourage smart saving, it often prevents genuine financial satisfaction.

Psychologist Brad Klontz describes such patterns as money scripts, beliefs about money formed in childhood. These scripts shape lifelong habits. For some, growing up with financial stress can lead to an inability to relax, even after achieving wealth.

The Comparison Trap

Comparison remains one of the biggest obstacles to financial contentment. Every scroll on social media brings glimpses of luxury vacations, designer clothes, and dream homes. Even successful people begin to feel like they’re falling behind.

This constant exposure creates unrealistic standards. What people forget is that social media rarely reflects reality. The majority share only highlights, not financial struggles or debt.

Globally, the contrast is even sharper. According to the World Bank, nearly half the world’s population survives on less than $8.30 a day. In that context, a millionaire’s lifestyle stands at the far end of the spectrum. Yet, in wealthy societies, the baseline keeps rising, pushing satisfaction further away.

Wellness expert Dr. Susan Biali Haas suggests reducing comparison triggers. She recommends limiting time on social media or skipping high-end environments that spark envy. The less people expose themselves to constant competition, the more peace they gain.

The Myth About Money and Happiness

For decades, research has asked whether money truly buys happiness. Studies once claimed emotional well-being peaked at incomes between $75,000 and $100,000 per year. Beyond that, the extra cash didn’t add much joy.

However, newer findings reveal a more complex story. A 2023 joint study from Princeton and the University of Pennsylvania found that happiness does rise with income for most people. Still, about 15% remain unhappy, no matter how much they earn.

This group, often described as “the unhappy minority,” struggles to find joy despite wealth. Their discontent appears linked to deeper personality traits rather than financial limits. Happiness for them depends more on emotional fulfillment, purpose, and connection than money itself.

Beyond the Bank Balance

Freepik | Beyond net worth, true wealth relies on relationships, meaning, and community ties.

True wealth extends far beyond net worth. Relationships, meaningful work, and community ties often influence satisfaction more than income. Time spent with loved ones, volunteering, or pursuing passions brings a sense of purpose that money alone cannot replace.

Still, understanding one’s financial position helps create perspective. Net worth, which measures assets minus debts, provides a clearer view of financial health than income alone.

According to the latest data from the Federal Reserve, wealth typically peaks during early retirement. For Americans aged 65 to 74, the median net worth is around $409,900, while the average reaches nearly $1.8 million. Yet even at that stage, many retirees express uncertainty about their financial stability.

Aging Brings Unexpected Emotional Wealth

Interestingly, aging often improves emotional well-being. Despite life’s challenges, retirement adjustments, health concerns, or loss, many older adults report higher happiness levels than younger generations.

Psychology researchers Floriana Irtelli and Fabio Gabrielli note in their 2022 study that older individuals tend to regulate emotions better. Over time, they learn to prioritize experiences that bring meaning instead of chasing fleeting desires. This shift in focus often delivers the contentment that money alone can’t buy.

The idea of wealth is shaped more by perspective than by numbers. A million dollars can mean security or simply another financial milestone, depending on personal expectations. As lifestyles rise and comparisons increase, satisfaction often becomes harder to find.

Ultimately, wealth feels empty without peace of mind. Genuine prosperity comes from gratitude, emotional balance, and staying true to personal values. When financial goals align with what truly matters, the illusion fades and a more meaningful sense of richness emerges.