A Scary New Report Reveals How Much Americans Need to Earn to Live “Comfortably”
Whether you’re loading up on groceries, buying your go-to iced latte, or just paying rent, it can feel like affording the basics — let alone living “comfortably” enough to save and thrive — is harder than ever. Small wage gains can’t keep up with increases in inflation, housing prices, and the cost of living, and as a result, 29% of the U.S. population falls into the ALICE category — Asset Limited, Income Constrained, Employed — where they’re one financial emergency away from poverty.
People don’t feel as financially secure about paying for their lifestyles, and now, a new study pinpoints exactly how much Americans think they need to earn to live “comfortably.” News flash: It’s tough out there.
According to the recent survey, conducted by BankRate, feelings of financial security are declining. The survey respondents believe they need to earn over $186,000 a year to live comfortably in 2024 — a salary which, according to Census Bureau data, is significantly higher than the $79,000 that the average full-time worker made in 2022. So, it’s unsurprising that those same folks surveyed said it was unlikely that they’d ever reach that salary. In fact, 30% said that they weren’t financially secure and didn’t think that they’d ever be — up from 26% of people the year prior.
The survey was made up of data from 2,407 U.S. adults from May 16-May 20. It also found that the amount that people felt they needed to feel “rich” — a term separate from “comfortable” — increased 8% from 2023. In 2024, the average American said they needed to earn $520,000 a year to be “financially free.”
Interestingly, Gen Zers and millennials had the highest average salary amount they needed to live comfortably ($200,000 and $199,999, respectively). Meanwhile, Gen Xers said they needed $183,000 to live comfortably, while baby boomers said $171,000.
The rising cost of living in recent years might have something to do with these increasingly negative attitudes. When taking inflation into account, the $186,000 salary would have the same purchasing power as a salary of $129,211 in May 2010.
There were also some gender divides when it came to attitudes about money. Out of those surveyed in the BankRate study, 21% of women said they’d never achieve the salary they need to be comfortable, compared to 16% of men.
However, it’s not all bad. The study found Gen Zers were more likely to have a positive attitude overall about their ability to get to this number — 63% said they were optimistic about making a comfortable salary in the future, compared to 50% of millennials, 31% of Gen X, and 17% of baby boomers.