Why Middle-Class Earners Quietly Becoming Millionaires Can Still Feel Broke

More middle-class Americans than ever are quietly joining the ranks of millionaires — at least on paper. Thanks to decades of home appreciation, retirement savings and stock market growth, hitting a $1 million net worth is increasingly common.

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However, many of these households don’t feel rich, and in today’s economy, they may not be. Rising costs, longer lifespans, and unexpected expenses are reshaping what it truly means to be wealthy.

Here’s how middle-class earners are quietly becoming millionaires — and why it’s not enough.

Why More Americans Are Crossing the $1 Million Threshold

Crossing the $1 million mark was once a symbol of extraordinary wealth.

Today, more middle-class households are reaching that milestone through steady savings and rising home values. However, it doesn’t always translate to financial freedom.

“More middle-class Americans are hitting that million-dollar mark because of long-term gains in home values and retirement accounts,” said Kaveh Vahdat, founder and president of RiseOpp, a marketing and strategy firm that tracks consumer and financial behavior across industries.

Vahdat went on to explain, “But net worth on paper doesn’t equal financial security. A lot of that wealth is tied up in a house they live in or in retirement accounts they can’t easily access without penalties. They don’t feel rich because their monthly cash flow, healthcare costs and living expenses still feel tight.”

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The Buying Power of $1 Million Has Dropped Significantly

While hitting the $1 million mark may sound impressive, its actual buying power has declined significantly over the years. Inflation and rising costs in housing, healthcare and everyday expenses have made that milestone less meaningful than it once was.

“Prices for basic things like food, rent and insurance have been going up faster than wages and some investment returns,” said Sean McSweeney, Chief Advisory Officer at Voyant Health.

One major factor eroding the value of $1 million in retirement is the rising cost of healthcare, especially for couples who live well into their 80s or 90s. “As they age, a pair may have to pay at least $300,000 for their medical care each year,” McSweeney said. “You might lose your million dollars quickly if you live a long time.”

Being Asset-Rich, but Cash-Stressed

Many middle-class millionaires are discovering their wealth is tied up in assets they can’t easily access. Being “house rich, cash poor” is a growing challenge, especially when rising living costs demand more financial flexibility.

According to UBS’s 2025 Global Wealth Report, the number of “Everyday Millionaires” (with $1 to $5 million in investable assets) has quadrupled since 2000 to around 55 million. Still, much of that wealth is tied up in homes and retirement accounts with no immediate cash flow.

“Mortgage pay-downs and a 15-year bull market quietly pushed many homeowners over the $1 million mark,” said Yehuda Tropper, CEO of Beca Life Settlements. “But much of that wealth is locked in primary residences and 401(k)s with no immediate cash flow.”

Tropper further explained, “Adjust for inflation and today’s $1 million buys what $420,000 did in 1990. So, the label signals asset inflation more than lavish spending power.”

Why Today’s Millionaires Still Need a Plan

Reaching a $1 million net worth can feel like a major milestone, yet it doesn’t automatically guarantee long-term financial security. Without a clear plan to manage spending, income and risk, even millionaire households can find themselves stretched thin in retirement.

“Think of $1 million as a starting point, not a finish line,” Vahdat said. “It’s easy to assume that hitting that number means you’re set, but the real work starts with figuring out how to convert that net worth into sustainable income.”

He added, “We recommend regular financial check-ins, using conservative growth assumptions and making sure spending aligns with actual cash flow. Building financial confidence often comes from preparation, not just assets.”

Smart Moves To Protect and Grow Wealth

Strategic decisions, such as downsizing the home, delaying Social Security and utilizing a bucket system for payments in the final years before retirement can make the difference between lasting security and a financial shortfall.

“Making it to $1 million is a huge success, but the work is far from over,” McSweeney said. “Always keep an eye on your spending, be ready for things to change and keep in mind that your money is a tool, not a place to rest.”

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