Three in four Americans do not have enough wealth to weather financial setbacks or achieve major life milestones, according to a report from The Aspen Institute, a nonprofit think tank.
The report defines an "essential wealth" benchmark as having six weeks of take-home pay in liquid savings combined with a net worth high enough to support both homeownership and retirement security. About 34.5 million U.S. households fall short of that threshold, the Institute found.
"The fact that most households fall short of that, we think, is a signal for a lot of the financial frustrations, the financial nihilism that we're seeing nowadays," said Steven Brown, director of insights and evidence for the Aspen Institute's Financial Security Program. "People feel like they can't get ahead, and that they don't have enough."
The findings may help explain persistent pessimism among Americans even when economic indicators look strong. Unemployment remains low and stocks have surged on AI-driven gains, yet half of adults say the American dream is no longer attainable, according to a recent CBS News poll. Meanwhile, about nine in 10 adults under 40 say it is harder for them to purchase a home than it was for their parents' generation, according to a June Pew Research survey.
The Aspen Institute report examined how much wealth a typical household would need at different ages to meet the essential wealth threshold. The required amount rises with age. For people under 40, meeting the threshold means having enough for a down payment on an entry-level home. The figures for people aged 40 to 49 and 50 to 64 are based on median incomes and could be higher or lower depending on a household's specific situation.
Brown cautioned that the thresholds are ballpark estimates. "A household in California may need a higher number. A household in West Virginia or Mississippi may need a lower number, and so these can vary by place," he said.
The report frames wealth as distinct from income. Liquid savings can protect a household from short-term financial shocks, while owning a home or other assets provides a foundation for longer-term goals like paying for a child's education or building toward retirement.
"Wealth is not just a material thing," Brown said. "It gives you this peace of mind, agency, the ability to make decisions and choices."
Across all age groups, the Aspen Institute found that Americans are failing to meet the threshold needed to achieve lasting financial security.
