How Much Do the Top 1%, 5%, and 10% Earn in 2025?
Way back in February 2019 I wrote a blog post titled "Are You in the Top 1%, 5%, or 10% of Income Earners?" While digging into the numbers, I also cautioned folks about worrying too much about how their finances stack up against those of other people, especially if they're looking at life through the lens of social media.
Almost six years, one pandemic, and a couple of technological leaps later, both the numbers around wealth and the influence of the media have gone up.
The financial trends aren't surprising. High earners tend to be good investors. Good investors tend to have the discipline to stick to their plans through regular ups and downs. And despite those ups and downs, the markets continue to grow wealth for investors.
But as we're living more and more of our lives online, I think our view of what "wealth" really means and the true value of money is becoming more and more distorted.
Let's take a look at the latest data on affluence and try to gain a little clarity on how these trends might affect your thinking about financial planning and living your best life in retirement.
Breaking Down the Top Brackets
According to the latest data from the Social Security Administration, here's what these three brackets look like in 2025:
Minimum Annual Income
Top 1%: $794,129
Top 5%: $352,773
Top 10%: $148,812
We can also look at data from the Federal Reserve to break down these brackets by net worth:
Minimum Net Worth
Top 1%: $11.6 million
Top 5%: $1.17 million
Top 10%: $970,900
And if you're wondering what the view from the very top looks like, the ultra-rich in the 0.1% have at least $62 million in net worth.
More Money, More Happiness?
Stats like these are always going to raise some important discussions about income inequality, inherited wealth, tax rates, and how the overall population is getting by. But, according to CNBC, wealth has generally grown for all Americans in the last year. And, based on an analysis of data from UBS' 2025 Global Wealth Report, we're living in the wealthiest country in the world.
So why are we so unhappy?
According to the latest World Happiness Report, the U.S. is the 24th happiest country in the world, down from 23 in 2024. Finland topped the list for the eighth year in a row, with Nordic neighbors Denmark, Iceland, Sweden, and the Netherlands rounding out the top five.
Researchers said that one of the biggest factors driving the dip in U.S. happiness was pessimism about the future from young people, who don't expect a lot of kindness from their fellow Americans. Young folks who grew up in the shadow of the 2008-09 Financial Crisis and COVID also tend to have a dimmer view of their financial prospects and the markets as a whole ... which, ironically, could pose the biggest threat to their long-term prospects.
And that leads me back to the media.
Folks have always felt pressure to "Keep up with the Joneses." But social media often bombards people with idealized portraits of a "perfect" life, including the things you need to buy, the clothes you need to wear, and the places you need to go. And for most of us, no matter how much money you have, there's always a higher level of "the good life" that's just out of reach.
At the same time, while there are some very real and very serious problems in the world right now, social media and cable news tend to make those problems seem even worse. Anxiety about the world can increase the anxiety that we feel about our money – especially if we spend too much of our day clicking and swiping past happy faces who seem to be doing better than we are and have more than we do.
Planning for More than a Number
But is having more really the answer?
While there’s nothing wrong with having financial goals, at Keen Wealth our comprehensive planning process aims higher than any number or percentile. We want folks to have the confidence they need to live life to the fullest, at every stage, while also feeling secure that they’ll have the resources to face unexpected challenges along the road to retirement.
As good as it can feel to hit that “number” you’ve been aiming for, I believe that a plan you can trust will truly make you feel wealthy, no matter what size your nest egg ultimately is. Get in touch with Keen Wealth and let’s start building that plan together.
About Bill
Bill Keen is a financial advisor with over 30 years of industry experience. As the founder and CEO of Keen Wealth Advisors, a registered investment advisory firm, he focuses on providing personalized retirement planning designed to help people thrive before and during their retirement years. With a passion for educating others, Bill regularly blogs about retirement planning, hosts the podcast Keen on Retirement, and has contributed to Forbes, U.S. News and World Report, Reuters, Wall Street Journal’s Market Watch, Yahoo Finance, and other publications. Based in Overland Park, Kansas, Bill and his team work with clients throughout the greater Kansas City area and across the nation. To learn more, connect with him on LinkedIn or visit www.keenwealthadvisors.com.
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