Don't they usually take out the primary residence when doing the calculation? It still doesn't mean someone is completely liquid as I'm guessing many people have their money in tax deferred accounts they can't access until old age.

Don't they usually take out the primary residence when doing the calculation?

Typically, it would seem that is indeed the case from most calculations I've seen. I mean, are you really worth a million dollars if you have to be homeless to access those dollars?