In a new poll, millennials desire to earn a salary over four times higher than other ages amid their declining standard of living.
Empower, a financial services firm revealed that millennials would be happy with a whopping $525,947-a-year. On the other hand, boomers, Gen X and Gen Z would be satisfied with incomes between $124,000 and $130,000. The survey included 2,034 Americans over a week-long period in August.
“The first word that comes to mind when people think about financial happiness is freedom, followed by security and relief,” according to the firm.
“Over half of people say they carry debt … and 36% could not handle an unforeseen expense over $500 without real worry.”
The median household income in the United States is about $74,000 annually. However, 67% of survey respondents said their income doesn’t keep up with inflation prices, and 42% have witnessed a recession in their standard of living. The reports concern rising costs, interest rates, and student debt. However, the generational divide about income brings attention to the stark reality that millennials need more to feel comfortable.
Millennial respondents said they’d want a net worth of $1,699,571, over three times more than Gen Z and nearly twice more than Boomers.
An earlier study about millennial debt discovered that the average Black millennial has a salary of $67,802 and $42,026 in savings. At the same time, they also have over $11,000 more in non-mortgage debt — an average of $101,809 vs. $90,590 – than millennials overall, BLACK ENTERPRISE previously reported. Student debt accounts for the most significant portion of the debt, with average balances
of $61,724 for Black people compared to $56,538 for all other groups. Thirty-five percent of Black young people in debt reported the risk of bankruptcy.“The combination of making less money, owing more in debt, and having to pay higher housing costs is a recipe for financial hardship over the next few years…,” said Matt Brannon, the author of the study published on Real Estate Twitch, BE reported.
The survey results also revealed gender differences in desires among millennials. Men aspired to have an annual income of $380,564 to be happy, while $182,708 was adequate for women. In addition, men desired a net worth of $1,488,327, and women reported just $880,950.
For Americans, financial freedom looks like treating themselves and loved ones, buying or owning a home, work-life balance, and early retirement. Gen Z plans to retire the soonest of all generations at age 54, and even a $7 cup of coffee would delight 62% of millennials.