Decades of savings, plus surging stocks and a hot real estate market, are turning more Americans into millionaires.

Vanguard’s Head of Behavioral Economics Research, Andy Reed, recently told USA Today that over 127,000 retail investors became millionaires in 2025, and he continues to see hundreds of users reach that milestone every day (1).

Similarly, Morningstar reported that 654,000 of Fidelity’s clients had 401(k) portfolios of $1 million or more in the third quarter of 2025 — a record for the financial firm (2).

Globally, financial analysts at UBS say they’re seeing a surge in what they call “everyday millionaires,” who have assets worth between $1 million and $5 million. Current estimates put the population of this group at 52 million worldwide (3).

The retirement platform Empower also estimates 9.1% of users now have at least $1 million in their retirement savings accounts, with many reaching this milestone in their 50s (4).

Although all of these facts are positive news for retirement savers, Reed cautioned that although more investors have a high net worth, few consider themselves wealthy. Some financial analysts warn that bad financial habits could easily erode seven-figure savings.

Interestingly, Vanguard found that only one in five of these new millionaires identified as an investor.

To account for this phenomenon, the firm coined the term hidden millionaire, referring to individuals who largely built their wealth through retirement savings and home equity, and don’t associate themselves with their high-net-worth status.

A 2025 survey from Northwestern Mutual revealed several glaring differences in how American millionaires feel about managing money compared with the general population.

For instance, 88% of surveyed millionaires agreed with the statement, “I have good clarity on exactly how much I can spend now versus save for later.” That figure was 68% for the general public.

Also noteworthy were the responses to the statement, “I am a disciplined financial planner.” Among millionaires, 76% agreed with this label, compared with 49% of the general public (5).

If “hidden millionaires” still haven’t gone beyond common views on their identity or skills with financial planning, they may be putting themselves at risk of losing their fortune faster than they need to.

The average retiree household spends $60,087 annually, per Western & Southern Financial Group (6). Hitting a seven-figure net worth, especially if a lot of it is tied up in illiquid or depreciating assets, isn’t likely to be enough on its own to provide a secure income for a 30-year retirement. Add in factors like inflation and higher health care costs, and it’s even more important to watch out for money management mishaps heading into retirement.

There are lessons to be learned about the mindset of millionaires to help investors stay in a better position financially in their golden years.

Read More: 5 essential money moves to make once you’ve saved $50,000

Read More: Young millionaires are ditching stocks. Why older Americans should take note

There are many specific steps hidden millionaires can take to make the most of their wealth, but a simple principle is always worth keeping in mind: Live below your means.

That doesn’t mean eating Dave Ramsey’s famous prescribed budget diet of rice and beans every day, but it does mean spending more mindfully and avoiding lifestyle creep by keeping discretionary spending in check.

One commonality among millionaires: They get help managing their money. If you crossed the seven-figure net-worth threshold by investing your retirement savings in stocks during a bull market, or buying a modest family home that grew impressively in value, you may have become rich without consciously realizing it.

Since many hidden millionaires don’t view themselves as investors, it makes sense that they may not think to hire a financial professional like a financial advisor, tax accountant, or certified financial planner, risking mishandling their money.

In fact, Northwestern Mutual’s survey reveals how much faith millionaires place in financial advisors versus the general population. Among millionaire respondents, 66% said they trusted financial advisers the most with their money, versus 33% of the general public (5).

Whether you choose to work with an adviser long-term or just call for a one-time assessment, a few features many millionaires share include diversification and very long-term planning that looks at a horizon of decades.

In USA Today, certified financial planner Michelle Crumm told a cautionary tale on how easily hidden millionaires can miss out on diversification and set themselves up for volatility risk. One of Crumm’s clients didn’t want to sell $4 million in Microsoft stock she received from a parent. However, Crumm bluntly said the first order of business was to diversify to avoid tying the family’s financial future to the welfare of one company (1).

Even if someone has an attachment to a particular company, concentrating so much wealth in one place increases volatility. A 2025 study in the Journal of Asset Management showed that broad diversification beyond equities reduces risk and improves returns compared with narrower diversification strategies, even with financial shocks like the 2008 financial crisis and COVID-19 crash (7).

If hidden millionaires concentrated their wealth in just a few investments, such as equities provided as part of a compensation package, they should consider talking to a professional about investing in a wider range of assets, such as broad-based ETFs, commodities, and bonds.

On the topic of retirement accounts, it’s common for hidden millionaires to roll over funds from a 401(k) into an IRA without realizing their investments don’t transfer between accounts. If individuals don’t reinvest the money in the account, they could hold cash for years and miss out on potential growth from other assets (8).

As a final note, all these tips don’t mean hidden millionaires can’t enjoy their hard-earned wealth. In fact, savvy millionaires should feel more confident using their wealth to support their ideal lifestyle — but it shouldn’t come at the expense of stability. Strategic planning is all about helping you enjoy money today and preserve it for the future.

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USA Today (1); Morningstar (2); UBS (3); Empower (4); Northwestern Mutual (5); Western & Southern Financial Group (6); Journal of Asset Management (7); CNBC (8)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.