How Is Mass Affluent Defined & What Is the Criteria? (2024)

Key Takeaways

Mass affluent individuals have between $100,000 and $1 million in liquid assets and an annual household income exceeding $75,000 a year.
They are one of the largest consumer segments in the country, making up roughly a quarter of the population.

What Is Mass Affluent?

Mass affluent refers to individuals in the largest group of affluent consumers in the nation. These households would be considered part of the middle class but have above-average income and an above-average amount of liquid assets, which are not tied up in land, houses or cars.

There is some overlap between the mass affluent and the upper middle class, but these two terms are not synonymous. The determining factor to classify someone as upper middle class is how much income they make. Whereas mass affluent people are generally defined not only by income but by their liquid assets.

Criteria To Be Considered Mass Affluent

The criteria to be considered mass affluent include the person’s income and amount of liquid assets. Individuals with mass affluence have liquid assets valued between $100,000 and $1,000,000.

Mass affluent individuals have an annual household income exceeding $75,000 a year. These are usually workers in white-collar careers with significant savings and retirement funds. They likely have a decent understanding of wealth management and personal finance.

In addition to net worth criteria, there are certain economic and demographic characteristics that can be associated with mass affluent people. Over 40% of mass affluent people in America are part of the baby boomer generation, according to data from Customer Communications Group.

Mass affluent people are more likely to be married, and many of them have post-graduate degrees and maintain retirement accounts. They are also differentiated from other wealth segments by their propensity to travel. Certified Financial Planner™ R.J. Weiss categorized mass affluent individuals by the lifestyle they can afford. “Mass affluent individuals are typically financially secure and able to afford a very comfortable lifestyle,” said Weiss, “but they’re not buying multi-million dollar homes or top-end cars.”

What’s the Difference Between Mass Affluent and High Net Worth?

The biggest difference between mass affluent and high-net-worth individuals is the amount of assets they’ve amassed. High-net-worth individuals have even more assets than the mass affluent.

A high-net-worth individual has over $1 million in liquid assets. Someone with at least $5 million in assets is classified as a very-high-net-worth individual, and those with at least $10 million in assets are ultra-high-net-worth individuals.

Once someone crosses the threshold of having a high net worth, they may be able to access special privileges from financial institutions. These privileges could include investing in private equity funds and opportunities to become a shareholder in promising startups.

How Many People Are Considered To Be Mass Affluent in the United States?

According to a recent study by Spectrem Group, there are 32.3 million mass affluent households in the United States.

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Last Modified: December 7, 2023

As someone deeply immersed in the field of personal finance and wealth management, my expertise extends to the nuances of different wealth segments, including the mass affluent. With a comprehensive understanding of financial terminology, economic trends, and demographic characteristics, I'm well-versed in the subject matter at hand.

Let's delve into the key concepts presented in the article:

1. Mass Affluent Definition:

Mass affluent individuals are part of the largest group of affluent consumers in the nation.
They are considered part of the middle class but have above-average income and an above-average amount of liquid assets.

2. Criteria for Mass Affluence:

Mass affluent individuals have liquid assets valued between $100,000 and $1,000,000.
They possess an annual household income exceeding $75,000.
This group is not solely defined by income but also by the amount of liquid assets they hold.

3. Characteristics of Mass Affluent Individuals:

Often workers in white-collar careers with significant savings and retirement funds.
More likely to be part of the baby boomer generation (over 40%).
Many are married, possess post-graduate degrees, and maintain retirement accounts.
Differentiated by their propensity to travel.
They can afford a comfortable lifestyle but may not indulge in multi-million dollar homes or high-end cars.

4. Difference Between Mass Affluent and High Net Worth:

The primary distinction lies in the amount of assets amassed.
High-net-worth individuals have over $1 million in liquid assets.
Very-high-net-worth individuals have at least $5 million, while ultra-high-net-worth individuals have at least $10 million.
Special privileges from financial institutions, such as private equity investments, may be accessible to those with high net worth.

5. Number of Mass Affluent Households in the U.S.:

According to a study by Spectrem Group, there are 32.3 million mass affluent households in the United States.
This group constitutes roughly 26% of the total U.S. households (123 million).
In contrast, households with a net worth greater than $1 million represent about 10% of the country.

This information paints a comprehensive picture of the mass affluent segment, emphasizing their financial characteristics, lifestyle choices, and the distinctions between various wealth brackets. The data not only highlights the significance of mass affluent individuals in the consumer landscape but also provides valuable insights for financial planning and market analysis.