A six-figure salary might have been the mark of financial success for American workers in the past, but that money doesn’t go quite as far these days. In expensive cities like San Francisco and New York, $100,000 a year after taxes and cost-of-living adjustments amounts to about $36,000 annually, according to a study from financial technology company SmartAsset.
Many U.S. employees want to position themselves for an annual salary bump, even if that means finding a new job. More than three in five workers received a pay increase in the 12 months since October 2023, including 12% who found a better-paying job, 41% who earned a raise at their current job and 8% who found both, per a Bankrate survey.
Related: Here’s How Much Money You Need to Make in Order to Be ‘Successful,’ According to Each Generation
What does a “comfortable” annual salary in the U.S. actually look like? Although it might vary considerably depending on the earner’s location, young workers across the board have some clear-cut expectations, research from writing platform EduBirdie found.
After surveying 2,000 Gen Z Americans about their financial habits and attitudes toward money, EduBirdie revealed that 51% of them believe that money is the key to happiness — and that 58% of them could be “comfortable” living on an annual salary between $50,000 and $100,000.
Despite Gen Z’s notion of what makes a comfortable income, many of them strive to hit lofty salary goals as they enter their fourth decade.
By age 30, 22% of Gen Z expect to earn $100,000 to $200,000 a year, and 10% expect to earn $200,000 to $500,000, according to the research. Another 7% anticipate making at least $500,000 annually at 30.
Related: Millennials Say They Need $525,000 a Year to Be Happy. A Nobel Prize Winner’s Research Shows They’re Not Wrong.
“Despite many [41%] still relying on their parents [for money], this generation is undeniably ambitious,” Avery Morgan, chief human resources officer at EduBirdie, says. “Our report shows they’re not counting on a golden parachute like marrying into wealth or inheritance. Instead, 17% believe they’ll earn $200,000 by age 30 — a bold goal that demands strategic career moves, continuous learning, and a bit of luck.”
However, the majority of U.S. employees in their thirties don’t earn six-figure salaries. The average U.S. salary in 2023 was roughly $65,000, per LendingTree data, but comparing median salaries — the middle number in a list of salaries — can paint a more accurate picture, NerdWallet notes.
Related: The National Average Salary Is About $65,000. Here’s What Americans Are Saving for Retirement — How Do Your Stats Compare?
American workers aged 25 to 34 saw median annual earnings of $57,356 in Q2 2024, and those aged 35 to 44 saw median annual earnings of $64,844 during the same period, according to NerdWallet’s data.
Those figures are a far cry from Gen Z’s anticipated $100,000 or $200,000 annual income by age 30. However, young employees committed to improving their personal finances can take some key steps to set themselves up for success.
Although EduBirdie’s survey found that 61% of Gen Z believe their career earnings alone will see them through retirement, 26% said they’re making smart investments to grow their wealth over time. Nearly half of Gen Z and millennials also have side hustles to supplement their 9-5 incomes.
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