Add as a preferred source on GoogleAspen Benchmark Finds 74% of U.S. Households Lack Essential Wealth
For a household in its 30s, the benchmark is about $120,000 in net worth and liquid savings equal to six weeks of take-home pay.
The Aspen Institute Financial Security Program’s essential-wealth measure puts 26% of U.S. households at its resilience benchmark, leaving three in four below a standard for absorbing shocks and planning ahead.
The program developed the measure to capture more than a household’s ability to cover day-to-day bills. It considers whether families hold a mix of assets with potential to gain value, such as a home and retirement savings, giving them more options during disruptions and when setting longer-term goals.
For a household in its 30s, the example target is about $120,000 in net worth, with readily available savings equivalent to six weeks of take-home pay. This level of wealth is meant to provide both an asset base and a cash reserve.
A further 43% of households occupy a middle tier. Their net worth could pay three months of expenses calculated using the federal poverty line, but the amount falls short of Aspen FSP’s resilience standard. That can leave families struggling to save for a down payment or deciding whether to cover an emergency car repair or add to retirement savings.
The figure remains low for older households as well: 24% of those ages 50 to 64 meet the standard, meaning most in that age group fall below it.
Household savings and wealth levels from 2022 underpin the estimates. The benchmark highlights how ownership of assets can affect financial security as those assets appreciate over time.
From 2000 through 2024, home prices gained about 60% after inflation, while the S&P 500 produced roughly 200% in total returns after inflation. Median household income, adjusted for inflation, increased about 15% over the same period.
Households without those holdings may have less protection against a job loss, medical bill or other disruption and miss out on gains that compound over time. Families that spend most of their income on basic needs may cut purchases or take on debt after a shock; savings can help them recover without those tradeoffs. The framework is intended to help leaders shape wealth-building programs and judge whether they are working.
“Wealth is not a luxury,” wrote Joanna Smith-Ramani, co-executive director of the Aspen Institute Financial Security Program.