What You Need to Know
- The average salary respondents said they would need to feel secure is $186,000, more than double the median income.
- To feel rich, they said they would need to earn $520,000 a year on average.
- Baby boomers are more pessimistic than other generations,
Three-quarters of Americans say they do not feel financially secure, up from 72% who said this last year, Bankrate reported Monday.
Respondents said they would need an annual salary of$186,000 to feel secure — more than twice the median income of$79,209.
Bankrate’s report is based on an online survey it commissioned YouGov Plc to conduct in mid-May involving 2,407 U.S. adults.
Feeling Insecure
Forty-two percent of baby boomers in the survey and 37% of Gen Xers said they were not completely financially secure. This compared with 21% of millennials and 13% of Generation Z who said they felt this way.
At the same time, 64% of Gen Zers and 53% of millennials who said they are not financially secure expect to be so someday, compared with 48% of Gen Xers and 26% of boomers. Overall, only 15% of Gen Xers said they were financially secure, versus 24% of Gen Zers, 26% of millennials and 32% of boomers.
Forty-six percent of respondents said that earning an amount less than $100,000 per year would be enough to make them feel financially secure, while 43% said they would need to earn at least that much. These include 25% who said $150,000 or more, 14% who said $200,000 or more and 7% who said $500,000 or more.
Here’s a demographic breakdown of what American workers in the survey said they would need to earn annually to feel financially comfortable:
- Men: $197,000
- Women: $176,000
- White Americans: $171,000
- Black Americans: $282,000
- Hispanic Americans: $173,000
- Gen Zers: $200,000
- Millennials: $199,000
- Gen Xers: $183,000
- Boomers: $171,000
- Parents with children younger than 18: $215,000
- Parents with children older than 18: $192,000
- Adults with no children: $172,000
“Life always seems like it’d be better with just a little bit more money to spare,” Bankrate analyst Sarah Foster said in a statement. “That’s even more true when the items Americans both need and want have been climbing in price.”
In the four years since the onset of the pandemic, Foster noted, financial comfort appears to be a privilege, afforded only to those wealthy enough to withstand the effects of inflation.
Prospects of Getting Ahead
Among survey respondents who had an idea of what they would need to earn in order to attain financial security, only 37% said they were likely to earn that salary in their lifetime, including 16% who said itwas highly likely.
FAQs
Average American needs to make $186K to feel financially secure, survey finds.
How much do you need to be financially secure? ›
That depends on your age, income needs, and financial objectives. But generally speaking, the "4% rule" is a good measure of financial security. In other words, if you're able to safely withdraw 4% from your investment accounts every year and never run out of money, it's probably safe to say you are financially secure.
How does it feel to be financially secure? ›
Achieving financial security means being able to pay your bills while having enough left over to make some discretionary purchases and put money away for the future, the personal finance site said.
How many people feel financially secure? ›
Feelings of financial security, by region, race and gender
| Financial security levels | Men | Women |
|---|
| I am completely financially secure | 27% | 23% |
| I am not completely financially secure but will be someday | 46% | 44% |
| I am not completely financially secure and likely never will be | 27% | 33% |
Jul 1, 2024
A newly released Bankrate survey says comfort can be found at $186,000 a year — or three times the $59,540 annually the Bureau of Labor Statistics reported for a full-time wage and salary worker in the fourth quarter of 2023.
Can I retire with 500k at 40? ›
As mentioned, $500,000 can last for over 30 years if budgeted correctly. However, there are a number of caveats to this, including how long you need your retirement savings to last you. For example, if you retire at 40 and need enough retirement savings for another 40 years, you may struggle.
How much Americans say they need to earn to live comfortably? ›
Americans say they need to earn $186K to live comfortably — but is it enough? (NEXSTAR) — While inflation has seemingly flatlined as of late, it's hard not to wince when you see the prices of things like housing and fast food.
How much money do you need to feel secure? ›
The average salary respondents said they would need to feel secure is $186,000, more than double the median income. To feel rich, they said they would need to earn $520,000 a year on average.
At what age do people become financially secure? ›
Among the key findings: 45% of young adults say they are completely financially independent from their parents. Among those in their early 30s, that share rises to 67%, compared with 44% of those ages 25 to 29 and 16% of those ages 18 to 24.
What household income do you need to feel rich? ›
Many Americans don't think they necessarily need to make $1 million a year to feel like they're well off financially, according to Bankrate's 2024 Financial Freedom survey. On average, Americans say they'd need to earn around $520,000 annually to feel rich, according to the survey.
More than 1 in 3 workers (34 percent) say they are living paycheck to paycheck. That means they have little to no money left over for savings after covering their monthly expenses. Nearly 6 in 10 Americans (59 percent) are uncomfortable with their level of emergency savings.
How can you tell if someone is financially stable? ›
The most common signs of a financially stable person include having little to no debt, being able to make and stick to a budget, having a healthy amount of money in savings, and having a good credit score. Financially stable people tend to see their net worth increase year over year.
Are Americans still struggling financially? ›
More than a quarter of US adults are struggling financially. 72% of Americans reported “living comfortably” or “doing okay,” according to December 2023 data from the Federal Reserve.
What salary do you need to live comfortably in 2024? ›
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
What salary do you need to live a comfortable life? ›
What percentage of Americans are financially free? ›
SAN MATEO, Calif., Aug. 22, 2023 /PRNewswire/ -- Despite most Americans having modest expectations of what it means to attain financial freedom, just 1-in-10 (11%) report they are living their definition of financial freedom, according to a new survey by Achieve, the leader in digital personal finance.
How much money do I need to feel secure? ›
Experts often suggest aiming for a net worth of 3-5 times your annual income by age 45 and 7-9 times by age 65. These are rough guidelines, of course, as everyone's situation differs.
Is $5,000 enough for savings? ›
The FDIC recommends keeping at least six months' expenses in an emergency fund. While $5,000 in savings is nothing to scoff at, it probably isn't enough for most people to meet that criteria.
What is considered financially stable? ›
What is financial stability? A simple definition of financial stability is being able to comfortably live every month without worrying about money. You don't overspend but you still enjoy doing things you love to do. You pay your bills on time and you have an emergency fund in place.
At what point are you financially free? ›
Everyone defines financial freedom in terms of their own goals. For most people, it means having the financial cushion (savings, investments, and cash) to afford a certain lifestyle—plus a nest egg for retirement or the freedom to pursue any career without the need to earn a certain salary.
