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A previous benchmark of a six-figure income as a symbol of financial achievement in the United States is increasingly being reevaluated. In high-cost locales such as San Francisco and New York City, a salary of $100,000—after adjusting for taxes and the cost of living—translates to a more modest effective income of just around $36,000 annually, according to findings from financial technology firm SmartAsset.
As many employees seek to enhance their earnings, there is a trend of individuals exploring new job opportunities. According to a Bankrate survey, over 60% of workers experienced a wage increase in the year leading up to October 2023. Among these, 12% found better-paying positions, 41% received pay raises in their current roles, and 8% achieved both outcomes.
Related: Here’s How Much Money You Need to Make in Order to Be ‘Successful,’ According to Each Generation
The definition of a “comfortable” salary varies widely based on geographical location, yet younger generations have expressed distinct expectations. A recent study conducted by EduBirdie surveyed 2,000 members of Generation Z regarding their financial outlook and behavioral patterns. The results indicated that 51% of respondents prioritize financial wealth as a key driver of happiness, and 58% believe that an annual salary between $50,000 and $100,000 would suffice for a comfortable lifestyle.
While this generation’s perception of what constitutes a comfortable income varies, many also aspire to achieve ambitious salary targets as they move into their thirties. The survey revealed that 22% of Gen Z anticipates earning between $100,000 and $200,000 annually by age 30, while 10% have set their sights on an income range of $200,000 to $500,000. Notably, 7% expect to earn upwards of $500,000 by that milestone.
Related: Millennials Say They Need $525,000 a Year to Be Happy. A Nobel Prize Winner’s Research Shows They’re Not Wrong.
“Despite the fact that a significant percentage [41%] of this cohort still rely on parental support, their ambition is evident,” asserts Avery Morgan, chief human resources officer at EduBirdie. “The findings indicate they are not waiting for financial windfalls through marriage or inheritance. Instead, 17% anticipate reaching a salary of $200,000 by 30—a goal that necessitates intentional career choices, ongoing education, and a degree of serendipity.”
On the other hand, many American professionals in their thirties do not currently earn six-figure incomes. As per data from LendingTree, the average salary in the U.S. for 2023 is around $65,000. However, examining median earnings—defined as the midpoint in a range of salaries—provides a clearer financial picture, as noted by NerdWallet.
Related: The National Average Salary Is About $65,000. Here’s What Americans Are Saving for Retirement — How Do Your Stats Compare?
Data from NerdWallet indicates that Americans aged 25 to 34 had median annual earnings of $57,356 during Q2 of 2024, while those aged 35 to 44 earned a median of $64,844. These figures contrast sharply with Gen Z’s salary aspirations, which underscore a potential gap between expectations and reality in earnings at a young age.
Nevertheless, young professionals looking to bolster their financial prospects can take proactive measures. Although 61% of Gen Z participants in the EduBirdie study expressed confidence that their career earnings would sustain them through retirement, 26% noted they are making strategic investments aimed at wealth accumulation. Additionally, nearly half of Gen Z and millennial workers engage in side hustles to augment their traditional incomes.
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