Gen Z earns the least but wants the most, study finds

Americans of all ages earn far less money than they think they need to succeed, a new study finds.

A “Secret to Success” study released Tuesday by Empower, a financial services company, reveals that each generation defines financial success differently. The largest gap is among Generation Z, made up of people born between 1997 and 2012. Many of them are still in school or fresh out of university, they earn the least and think that They need to earn the most. Baby boomers, or people born between 1946 and 1964, earn the most and think they should earn the least.

The survey of 2,203 U.S. adults was conducted by Morning Consult in September. Its respondents indicated that financial success is not only about accumulating money, but also about purchasing power. Only 27% of respondents consider wealth the highest measure of success, while 59% say happiness – defined as being able to buy things and experiences you love – is the most important benchmark. .

What salary does each generation aspire to?

Overall, Americans think they need an average salary of about $270,000 a year to be successful, but that varies across generations. A gap of nearly $488,000 separated Gen Z and baby boomer respondents to the survey.

Generation Z: $587,797
Millennials: $180,865
Generation X: $212,321
Baby boomers: $99,874

What net worth does each generation aspire to?

The study finds that Americans broadly describe financial success as acquiring an average net worth of about $5.3 million, but this again varies across generations. Generation

Generation Z: $9,469,847
Millennials: $5,638,205
Generation X: $5,295,072
Baby boomers: $1,049,172

How much does each age group currently earn?

The median weekly wage for the nation’s nearly 121 million full-time workers was $1,165 in the third quarter of 2024, according to the U.S. Bureau of Labor Statistics. This represents an estimated amount of $60,580 per year.

These figures, although not seasonally adjusted, reflect an increase of 4.2% from last year. During the same period, the consumer price index for all urban consumers, a measure used to track inflation, increased by 2.6%.

Here’s a look at what the bureau reported for each age bracket earned during the third quarter of 2024:

16-19 years old: $633 per week or approximately $32,916 per year
20-24 years old: $778 per week or approximately $40,456 per year
25-34 years old: $1,107 per week or approximately $57,564 per year
35-44 years old: $1,301 per week or approximately $67,652 per year
45-54 years old: $1,339 per week or approximately $69,628 per year
55-64 years old: $1,268 per week or approximately $65,936 per year
65 years and over: $1,121 per week or approximately $58,292 per year

Contact Rachel Barber at [email protected] and follow her in X @rachelbarber_