In a recent survey conducted by insurance company Chubb, it was revealed that even America's wealthiest individuals are feeling financially insecure as they navigate an increasingly challenging economic landscape. The survey, which interviewed 800 affluent North Americans with investable assets of at least $500,000, shed light on their perceptions of wealth and the factors that keep them up at night. Surprisingly, over two-thirds of the respondents, including those with a net worth exceeding $10 million, do not consider themselves wealthy.

The survey found that building wealth has become more difficult and presents numerous concerns for affluent Americans. Worries about inflation, a turbulent stock market, the fear of job loss, and the impact of the climate crisis on property values were some of the key factors contributing to this sentiment. Despite significant financial reserves, a majority of the wealthy individuals surveyed expressed nervousness about economic uncertainty and the potential devaluation of their investments.

An overwhelming 80% of respondents identified the risk of their investments losing value as a primary concern impacting their wealth and lifestyle. Additionally, approximately 74% were worried about the effects of inflation, especially considering that inflation rates remain high for key expenses such as housing, dining out, and entertainment events.

Although the economy is projected to achieve a "soft landing," as indicated by the current 3.1% year-over-year inflation rate (slightly above the Fed's target of 2% but down from the year's high of 6.4% in January), respondents remain apprehensive. In response to economic indicators, the Federal Reserve plans to lower interest rates three times next year. Furthermore, with unemployment projected to range between 3% and 4% by 2023, the overall state of the economy surpasses many economists' expectations.

The survey also highlighted concerns about the climate crisis and its potential impact on affluent individuals' properties. More than two-thirds of respondents expressed worry that weather-related events driven by climate change could damage their assets. Over three-fourths identified extreme weather as the top risk to their homes. These concerns align with the increasing frequency of weather-related disasters, which not only cause significant property damage but also raise insurance premiums.

Despite their financial anxieties, many wealthy Americans are planning to increase spending in certain areas. Approximately 73% of respondents anticipate greater spending on real estate, emphasizing their continued confidence in this sector. Additionally, 65% foresee increased spending on entertainment, reflecting their desire to maintain a certain lifestyle and make the most of their wealth.

While affluent individuals voice their concerns about financial security, they still enjoy a significantly stronger position compared to the middle class. A group known as HENRYs (high earners, not rich yet) has previously highlighted their own hesitancy to invest in homes or start families due to inflation and long-term economic uncertainties. Interestingly, some wealthy Americans experience "money dysmorphia," feeling financially inadequate regardless of their immense wealth. Millennials, in particular, have indicated that an annual salary of $525,000 is necessary for their happiness.

The economic disparity between the wealthy and less affluent Americans is evident in recent data released by the Federal Reserve. The top 0.1% of Americans have gained a staggering $1.3 trillion in wealth since early 2023, while the bottom 50% have only experienced a $330 billion increase. Furthermore, the number of households with over $1 million in net assets rose by 63% between 2019 and 2022.

Experts suggest that numerous challenges, including difficulties in purchasing a home, high inflation rates, and borrowing costs, have made building wealth more arduous. A survey conducted by Fannie Mae in December revealed that 86% of Americans believe it is not a favorable time to buy a home, especially considering the average 30-year fixed mortgage rates of around 7.5%.

Overall, while the pandemic has contributed to a surge in net worth for Americans, this increase has disproportionately benefited wealthier individuals. The average American's net worth has risen by 37% between 2019 and 2022, with a median net worth of $192,000 when adjusted for inflation. However, those in the bottom 20th percentile experienced only a 24% increase, while those in the 80th and 90th percentiles saw a remarkable 69% rise. This discrepancy stems, in part, from the fact that individuals in the bottom 20th percentile, who have a median net worth of $14,000, often lack significant assets such as homes.

As concerns about the future persist among higher-earning Americans, it remains crucial to address the widening wealth gap and work towards a more inclusive and stable financial landscape.