What is the ideal salary? Answer: $270,000

LinkedIn sent me a top news story that cited a survey conducted by the financial services firm Empower.

The article struck me as further proof of what is happening within the US economy for middle America - 90-95% of us. The average salary to be successful is set at $270,000.

Boomers set the target at the old goal - $100k.

Every other demographic is significantly higher, from 2x to 5x that old $100k mark of success.

It also notes that $5.3 million of net worth is the mark for financial success. Again, this illustrates the old goal of $1m being outdated and a goal for a previous generation, not the current workforce.

So, who makes $270,000?

Well, not many households. In fact, less than 15% of US households make over $200k. That is household income, not individual. 60% of US households do not make over $100K.

Are people way off in their perceptions about the money needed?

No.

It is increasingly taking more and more income to survive and move forward in today’s world and income has stayed relatively flat for decades. This is part of what creates current and future struggles.

The Empower study also revealed how we define success and the 4 Factors that contribute to getting ahead. Hard Work, Talent, Who You Know and Luck/Circumstances. This identifies what we all know, it is a combination of personal and social realities that allow for upward mobility and progress.

This survey points to my thesis of $150,000 being the new individual target for concern with the future poor and the state of getting ahead in the current US economy.

Here is a link to the LinkedIn news story with the links to Empower’s survey.

https://www.linkedin.com/news/story/americans-see-ideal-salary-at-270k-6244340/

As always, if you come across a financially related article you’d like to send my way please do! 

Best place to send them is to me.

More next time!

Jonathan