New Study Reveals How Much Money Each Generation Needs for Success

Many Americans from Gen Zers to Boomers believe they need much more money than they currently earn to define financial success, a recent study based on various generations’ satisfaction in terms of money shows.

The research, referred to as the “Secret to Success” study, was recently released by financial company Empower. It found that people from different generations have varying ideas about what financial success means.

Young Gen Zers, born between 1997 and 2012, have the biggest gap between what they earn and what they think they need. Most are still in school or just starting their careers, earning less but hoping for more. In contrast, Baby Boomers, born between 1946 and 1964, earn the most but feel they need the least to succeed.

Financial success based on “average annual salary”

According to the survey, Americans believe they need an average annual salary of around $270,000 to feel successful. However, the desired salary differs significantly across generations, with a large gap between the youngest and oldest groups. Here’s what each generation aspires to earn:

• Gen Z: $587,797
• Millennials: $180,865
• Gen X: $212,321
• Baby Boomers: $99,874

Gen Z considers an annual salary of $587,000 the minimum to be considered financially successful. pic.twitter.com/941vBQyGip

— Anthony Pompliano (@APompliano) November 22, 2024

The difference is striking, with Gen Z aiming the highest and Baby Boomers expecting the least. The nearly $488,000 gap highlights how age, career stage, and life experiences shape financial expectations.

Financial success based on “average net worth”

The study reveals that Americans associate financial success with an average net worth of about $5.3 million. However, the desired net worth varies by generation, reflecting varying expectations and life stages. Here’s what each generation aims for:

• Gen Z: $9,469,847
• Millennials: $5,638,205
• Gen X: $5,295,072
• Baby Boomers: $1,049,172

Younger generations, such as Gen Z, aspire to the highest net worth of nearly $9.5 million. Millennials and Gen X share similar goals, targeting around $5 million to $6 million. In contrast, Baby Boomers set a much lower benchmark at just over $1 million, likely reflecting their proximity to retirement and different financial priorities.

Weekly income of various age groups

The US Bureau of Labor Statistics reports that the median weekly earnings for nearly 121 million full-time workers were $1,165 in the third quarter of 2024. This amounts to an estimated annual salary of $60,580. Wages increased by 4.2 percent compared to last year, while inflation, measured by the Consumer Price Index, rose by 2.6 percent during the same period.

Here’s how earnings vary by age group:

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

Earnings increase with age, peaking for workers aged 45 to 54 and gradually decline for older age brackets. These figures reflect median earnings prior to seasonal adjustments.