Gen Z is far from cashing in on their dreams of financial success.
“Secrets of Success” study published by Empower Turns out Gen Z has an idea of how much salary they need to be considered successful — and they don’t want money for the reasons you think.
The financial services firm surveyed 2,203 American adults to determine their opinions and goals regarding “financial success.”
They found that while Gen Z earn the least money, they feel they need it the most, while Baby Boomers earn the most but have the lowest financial goals.
Americans feel they need an average salary of about $270,000 a year to be successful.
But that amount varies significantly across generations – there is a difference of about $488,000 between Gen Z and Boomers.
Gen Z feel they need an annual salary of $587,797 to be successful while Boomers would settle for $99,874 per year.
Meanwhile, Millennials think bringing home $180,865 per year would be enough for success, but Gen X believe they need an annual salary of $212,321.
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However, according to the latest data, most Americans are not even getting close to their successful salary goals From the US Bureau of Labor Statistics,
Salaried workers earned average weekly earnings of $1,165 in the third quarter of this year, which would equate to a salary of $60,580 per year.
Pay checks increased by an average of 4.2% over the past year, but struggled to make up that much of a difference due to the 2.6% inflation rate. Consumer Price Index Report for All Urban Consumers,
Average Third Quarter Salary for 2024
- Age 16-19: $633 per week or an estimated $32,916 per year
- Age 20-24: $778 per week or an estimated $40,456 per year
- Age 25-34: $1,107 per week or an estimated $57,564 per year
- Age 35-44: $1,301 per week or an estimated $67,652 per year
- Age 45-54: $1,339 per week or an estimated $69,628 per year
- Age 55-64: $1,268 per week or an estimated $65,936 per year
- Age 65 and older: $1,121 per week or an estimated $58,292 per year
Nearly (51%) of adults believe that a well-paying job is the best way to achieve financial success, but many know that it’s not just about what your paycheck brings.
Americans also describe financial success as achieving an average net worth of $5.3 million – although that also varies by generation.
Gen But Gen Z and Boomers are far from agreeing.
The youngest generation of adults think they need a net worth of $9,469,847 to achieve financial success, while Boomers aspire to only $1,049,172.
But it’s not just that Americans want to see the highest numbers in their bank accounts. The real value is what that money will allow them to do.
Only 27% ranked money as the top measure of success.
Instead, the majority (59%) said the most important factor was happiness – defined as being able to buy the things and experiences you love – followed by free time to pursue personal passions (35% ) has the luxury of.
But how can one achieve financial success?
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Americans believe in the “factor of four”: hard work (84%); talent (65%); who you know (55%); and luck and circumstance (51%).
Many adults also think it pays to be a visionary (36%) and then have to outdo everyone else (32%) to reach their goals.
But for 1 in 5 of the younger generation (Gen Zers and Millennials 19%), they just have to “fake it ’til you make it.”
“Luck favors the courageous, and people find that with the right combination of dreaming and planning, success is within their grasp,” Rebecca Rickert, head of communications at Empower, said in a statement.
“It’s about disciplined, smart money choices, but overall people view financial success as very meritocratic and a little contingent. It seems that effort and better performance will take you far.”
However, not everyone is optimistic about their earnings.
Nearly half of Americans (47%) do not think they will ever achieve the level of success they want, while more than a third blame the economy or income instability.
But even if they reached their initial goal, 61% admitted they believed you could never have enough money.
