Americans need over $186K to feel comfortable, Bankrate survey shows

NEW YORK, UNITED STATES — A recent survey by Bankrate reveals that Americans believe they need to earn over $186,000 annually to feel financially comfortable, more than double the average full-time worker’s salary, which is about $79,000.

Bankrate commissioned YouGov Plc to conduct the survey, which covered 2,407 adults in the United States from May 16 to 20, 2024. 

The findings revealed that only 6% of respondents feel they make the necessary $186,000 per year. About 37% are optimistic they will reach this income, while 31% think it’s unlikely, and 18% feel it is unattainable in their lifetime.

Financial security remains elusive for many Americans

The survey found that only 25% of Americans consider themselves completely financially secure, down from 28% in 2023. 

“Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains and a feeling that their hopes and dreams are out of touch with their financial capabilities,” explained Mark Hamrick, Bankrate Senior Economic Analyst.

This sentiment is reflected in the data, with 75% of respondents indicating they are not completely financially secure. Even more concerning, 30% believe they will never achieve financial security, up from 26% last year.

How much money would you need to make to feel financially secure? The average American says they’d need an annual salary of $186,000. #financialfreedomday https://t.co/GlDZIYw7GL pic.twitter.com/Jt6c0AcRbT

— Bankrate (@Bankrate) July 1, 2024

Income disparities and aspirations

Different demographics show varying levels of financial security and aspirations. 

For instance, 45% of individuals with postgraduate degrees feel completely financially secure. 

Forty-four percent of those earning $100,000 or more said they feel completely financially secure, compared to 43% of those earning under $50,000, who are increasingly pessimistic about their financial futures.

Moreover, to feel rich, the average American estimates they need $520,000 annually, reflecting an 8% increase from the previous year. 

Key findings include:

• Generation Z (ages 18-27) was most optimistic about future financial security
• Generation X (ages 44-59) felt the least secure
• Baby Boomers (ages 60-78) were most likely to feel they’ll never be financially secure
• Black Americans reported needing the highest income ($282,000) to feel comfortable
• Men felt they needed to earn about 7% more than women to feel financially rich

“We’ve gone from an environment where inflation was the focus, and the impact of rising prices has resulted in an affordability crisis, which is now front and center,” Hamrick noted. 

“If prices continue to normalize and the job market remains stable, further progress can be clawed back on the affordability front.”

However, long-term challenges such as housing and college affordability continue to impact Americans’ financial outlook. 

The survey underscores the need for policymakers and individuals alike to address the growing gap between income expectations and economic realities.