The Biggest Difference Between American Millionaires and Everyone Else

24/7 Wall St. Key Takeaways:

• For American millionaires, it seems that the real advantage isn’t just their bank balance. It’s their much more detailed planning strategy, especially when it comes to retirement. 
• Millionaires are more likely to account for all retirement costs, such as taxes and healthcare when planning for retirement. 
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

Most people assume that being a millionaire brings peace of mind and a sense of security. Yet, surprisingly, Northwestern Mutual’s Planning & Progress Study 2024 revealed that only one-third of American millionaires consider themselves “wealthy,” and nearly half believe their financial plans could use improvement. The study compared millionaires vs. general public on the aspects of clarity and preparedness. 

This post was updated on October 19, 2025 to clarify that the study compared preparedness and clarity of retirement savings, vs. general feelings about wealth.

1. Retirement Needs

Millionaires often have a clearer picture of their retirement needs. The study reports 62% of those with advisors know how much to save to retire comfortably, compared to just 34% of those without professional guidance.

This level of preparedness sets them apart from the general population, where only 45% of Americans (with an advisor) know how much they need for retirement. 

2. Anticipating Market Risks

Millionaires are also much more likely to consider potential market dips in their retirement planning. A full 88% of millionaires with advisors account for market volatility, compared to 75% without advisors. This approach helps them manage their retirement portfolios better and maintain stability. 

3. Building Inflation Resilience

Given the impact of inflation on long-term savings, 83% of millionaires with financial advisors have plans to mitigate this risk versus 70% of those without. Again, that’s much higher than the general population. 

Inflation should play a significant role in financial planning into retirement, as it will eat away at purchasing power each year. 

4. Healthcare Costs in Retirement

Healthcare costs tend to rise as we age, so these costs are naturally a big part of retirement planning. Millionaires are proactive in this area, too. 83% of millionaires working with advisors have a strategy for covering healthcare costs, compared to 69% of those without advisors.

At the same time, only about half of the general population has considered how to pay for healthcare costs in retirement. 

5. Understanding Tax Impact

Taxes can erode retirement savings, and millionaires recognize this risk. About 80% of those with advisors factor taxes into their retirement plans, with 66% taking tax impact into account on overall retirement savings. That is much higher than non-millionaires. Only one in 10 Americans has considered how to minimize taxes on their retirement savings. 

Of course, millionaires also expect to pay more taxes, so this difference makes sense. However, when you have less money, getting away with paying less taxes is also important.