Charles Schwab’s latest Modern Wealth Survey reveals a widening generational gap in how Americans define financial success.
Rising costs and inflation have pushed the “comfort” threshold higher for the average American, but the youngest generation is charting a different path, prioritizing planning and lower benchmarks.
The survey, which polled 2,000 Americans aged 21 to 75, shows that while the average person thinks it takes $2.3 million to be considered wealthy, younger generations are finding peace of mind at much lower levels. This shift suggests that for the newest members of the workforce, wealth is becoming as much about the roadmap as the destination.
Gen Z (born between 1997 and 2012) is redefining what it means to be rich, and their outlook might be more optimistic than your own.
1. They disagree on the cost of comfort by over $600,000
There is a $614,000 difference between what Baby Boomers (born between 1946 and 1964) and Gen Z consider “financially comfortable.” Boomers believe they need $943,000 to feel secure. Meanwhile, Gen Z sets the bar at just $329,000.
This lower requirement may stem from the fact that many in Gen Z are just beginning their financial lives, often with fewer dependents or significant assets to maintain.
However, even when compared to the national average of $839,000, Gen Z remains the most frugal generation in terms of defining basic financial security.
2. Their outlooks on achieving wealth are polar opposites
Despite facing high interest rates and a challenging housing market, younger Americans are significantly more confident about their financial status. The survey found that 43% of Gen Z respondents believe they are either already wealthy or are on track to be wealthy in their lifetime.
This stands in sharp contrast to Baby Boomers, only 20% of whom report having reached wealthy status or being on a path to it. While Boomers may be more realistic about the fixed costs of retirement, Gen Z’s optimism appears to be fueled by a proactive approach to their finances early in life and a longer time horizon to grow their assets.
3. Gen Z plan far more than boomers
One of the most surprising findings is that Gen Z is actually more disciplined about documentation than their grandparents. Approximately 39% of Gen Z respondents have determined their financial goals and documented them in a formal plan. Only 26% of Boomers can make the same claim.
Furthermore, nearly half of Boomers (45%) reported having no financial plan, compared with 18% of Gen Z. Experts suggest that having a written roadmap is a key driver of financial confidence, helping younger investors translate abstract aspirations into tangible steps.
4. Gen Z has redefined wealth beyond the bank account
The definition of wealth is shifting away from purely material possessions. For the first time in the survey’s history, “happiness” (45%) has effectively tied with “the amount of money I have” (44%) as the top indicator of wealth. Physical and mental health also ranked high, cited by 37% and 32% of respondents, respectively.
This holistic view explains why Gen Z’s target for being “wealthy” is $1.7 million — significantly lower than the $2.8 million threshold cited by Boomers. For younger generations, wealth is increasingly measured by free time, relationships, and life experiences rather than a specific number of zeros in a portfolio.
5. They disagree on the future of traditional investing
The survey also highlights a shift in investment strategy. Two-thirds of Americans (67%) now believe that success requires looking beyond traditional stocks and bonds. In fact, 42% of respondents believe the classic 60/40 portfolio — a staple of retirement planning for decades—is now outdated.
Investors across all ages are increasingly interested in diversification through new asset types, including alternatives like private equity or cryptocurrency. This “modern” approach to wealth reflects a growing belief that the old rules of investing must evolve to meet today’s market volatility.
Build your own version of wealth
Whether your goal is $300,000 or $3 million, the Charles Schwab survey results suggest that the “feeling” of wealth is most accessible to those who take an active role in their finances. Achieving a sense of security isn’t just about the size of the windfall; it is about the clarity of the strategy. And it can start at any age.
- Create a documented plan: As the survey shows, those with a formal plan are significantly more likely to feel on track. Document your specific goals and the steps needed to reach them.
- Define what comfort means to you: Don’t rely on national averages. Calculate your personal “comfort number” based on your actual lifestyle needs rather than an abstract ideal of wealth.
- Diversify your definitions: Remember that 83% of Americans feel “rich” when they have quality relationships and good health. Invest in your well-being as much as your brokerage account.
- Re-evaluate your portfolio: With many Americans viewing the 60/40 rule as obsolete, now is a good time to speak with a professional about whether your asset allocation is truly diversified for 2026. If you have more than $100,000 in savings, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor legally bound to act in your best interests.
Ultimately, wealth is in the eye of the beholder. By lowering the bar for what they need to feel “comfortable” and raising the bar for personal planning, Gen Z is proving that you don’t need a multi-million-dollar empire to feel like you’ve made it.
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