US Household Financial Wealth Surpasses $90T — Evening Brief – 04.25.25
By the close of 2024, Cerulli Associates estimates that the total financial wealth of U.S. households exceeded $90 trillion, reflecting a 16% increase from 2023. This growth, detailed in The Cerulli Report—U.S. Retail Investor Solutions 2025, was fueled by two consecutive years of strong U.S. equity market performance, significantly boosting household wealth across various segments.
High-net-worth (HNW) households, defined as those with financial assets exceeding $5 million, experienced the most substantial gains. This group, numbering approximately 3.4 million households, controlled $49 trillion in financial wealth, accounting for 54% of the national total. Within this segment, over 100,000 ultra-high-net-worth (UHNW) households—those with financial assets of $50 million or more—further intensified competition among financial service providers.
“As this group begins to look for financial partners that specialize in HNW services such as estate planning, family offices, and trust management, providers will need to closely examine these service offerings to progress multi-millionaire clients through their advice relationship to this next level, or else risk losing them to firms with a renewed commitment to the segment,” said John McKenna, research analyst at Cerulli.
Meanwhile, the affluent segment (households with $2 million to $5 million in financial assets) and the mass affluent segment ($500,000 to $2 million) saw their combined market share decline slightly, from 38% in 2023 to 36% in 2024. These groups represent 17% and 19% of U.S. households, respectively.
Despite the dip, the mass affluent segment remains a critical market, particularly for retirement assets, which total $31.9 trillion. Of this, $16.7 trillion is held in individual retirement accounts (IRAs), $11.7 trillion in defined contribution plans, and $3.1 trillion remains in retirement accounts tied to former employers.
McKenna highlighted a significant opportunity for financial advisors in this space: With $3 trillion still held in previous employer-sponsored retirement accounts, advisors can target these assets for IRA rollovers or guaranteed income plans. This is particularly relevant for households in their 60s, who hold nearly $2 trillion in such accounts. Converting these assets can enhance investment flexibility, streamline portfolio management, and provide retirees with more predictable income streams.
Financial firms are increasingly focusing on the mass affluent segment, capitalizing on their existing relationships with retirement plan participants to offer personalized advisory services. “Targeted outreach to these clients based on age and/or asset levels can yield significant conversion rates of clients from 401(k) holders to full-service advisory relationships,” concluded McKenna.
The wealth surge underscores the need for financial firms to segment their offerings. HNW/UHNW clients demand bespoke solutions, while mass affluent clients seek accessible, retirement-focused advice. Firms that fail to adapt risk losing market share to competitors with stronger digital platforms or specialized expertise.