What Financial Comfort Really Means Across Generations
When I talk to clients about retirement and financial goals, one thing becomes clear: “financial comfort” isn’t a fixed number. It’s deeply personal, shaped by lifestyle, generation, and perspective. Charles Schwab’s 2025 Modern Wealth Survey sheds light on this idea, revealing how different age groups define both comfort and wealth.
According to the survey, Gen Z feels financially comfortable at around $330,000 in net worth. For Millennials, the number jumps to $850,000. Gen X lands near $780,000, while Baby Boomers require closer to $940,000. At first glance, these numbers might feel arbitrary. But they tell a bigger story about life stages and priorities. A 25-year-old just starting out doesn’t need as much saved to feel secure, while a 65-year-old is looking at retirement income, healthcare, and longevity.
The power of compounding also makes these numbers more interesting. If Gen Z builds to $330,000 early and lets it grow at 8% annually, it could turn into nearly $5 million by retirement. For Baby Boomers, however, the focus shifts from growing wealth to generating steady income. A $943,000 portfolio paired with Social Security can produce roughly $89,000 annually with a 5% withdrawal strategy. Same idea different focus.
The survey also asked what it takes to feel “wealthy.” Here the numbers climb higher: Gen Z at $1.7 million, Millennials and Gen X at $2.1 million, and Baby Boomers at $2.8 million. But here’s the kicker: even those hitting these benchmarks often don’t feel wealthy. Inflation fears, rising healthcare costs, and worries about long-term care keep people grounded in financial anxiety.
Wealth, I believe, goes beyond the bank account. The Schwab study found more people define wealth as happiness, health, relationships, and time freedom. Money is the foundation, yes, but it’s not the finish line. Wealth is about choice the ability to say yes to opportunities and no to obligations.
What stood out most in Schwab’s findings was the impact of having a financial plan. Of those who feel wealthy, 25% have a written plan compared to only 11% without one. Among those who feel comfortable, 39% have a plan, versus 20% without. A plan doesn’t magically add dollars to your account, but it reduces anxiety and decision fatigue. It gives clarity.
That’s why I tell people: take 30 minutes and sketch out a simple plan. List your income, expenses, goals, and lifestyle priorities. It doesn’t need to be fancy. The act of writing it down brings control, and control brings comfort.
At the end of the day, comfort and wealth are moving targets. What matters is defining your own version of both and making a plan to get there.
