The Rise of ‘Hidden Millionaires’ and Why Many Don’t Know They’ve Reached the Milestone

Decades of savings, coupled with a strong stock market and real estate appreciation, are creating more millionaires in America. However, a significant number of these new millionaires don’t identify as wealthy, a phenomenon experts are calling “hidden millionaires.” This disconnect can lead to poor financial planning and a greater risk of eroding their wealth.

The Growing Number of Millionaires

In 2025, over 127,000 retail investors became millionaires, with hundreds reaching that milestone daily, according to Andy Reed, Head of Behavioral Economics Research at Vanguard . Morningstar reported a record 654,000 Fidelity clients had 401(k) portfolios exceeding $1 million in the third quarter of 2025 . Globally, UBS estimates there are 52 million “everyday millionaires” – individuals with assets between $1 million and $5 million . Empower reports that 9.1% of its users now have at least $1 million in retirement savings .

The ‘Hidden Millionaire’ Phenomenon

Despite the increasing number of high-net-worth individuals, Vanguard found that only one in five new millionaires identify as investors . Vanguard coined the term “hidden millionaire” to describe individuals who primarily built wealth through retirement savings and home equity, and don’t perceive themselves as wealthy.

Mindset Differences Between Millionaires and the General Public

A 2025 survey by Northwestern Mutual revealed significant differences in financial perspectives between millionaires and the general population . 88% of millionaires agreed they had clarity on how much they could spend versus save, compared to 68% of the general public. 76% of millionaires considered themselves disciplined financial planners, whereas only 49% of the general public agreed with that statement.

The Risks of Not Recognizing Wealth

If “hidden millionaires” don’t adopt a wealth-conscious mindset, they risk losing their fortunes. The average retiree household spends $60,087 annually . A seven-figure net worth, particularly if tied to illiquid assets, may not be sufficient for a 30-year retirement, especially considering inflation and rising healthcare costs.

Key Principles for Preserving Wealth

To make the most of their wealth, hidden millionaires should prioritize:

• Living Below Your Means: Mindful spending and avoiding lifestyle creep are crucial.
• Seeking Professional Aid: Financial advisors, tax accountants, and certified financial planners can provide valuable guidance. Northwestern Mutual’s survey showed 66% of millionaires trust financial advisors most with their money, compared to 33% of the general public .
• Diversification: Avoiding concentration risk by investing in a broad range of assets, such as ETFs, commodities, and bonds. A study in the Journal of Asset Management showed broad diversification reduces risk and improves returns .
• Reinvesting Funds: Ensuring funds are reinvested when rolled over from 401(k)s into IRAs to avoid missed growth opportunities.

The Importance of Long-Term Planning

Strategic planning is essential for enjoying wealth today while preserving it for the future. Millionaires often engage in long-term planning, looking at a horizon of decades.