Gen Z is far off from cashing in on their dreams of financial success.
The “Secret to Success” study published by Empower revealed Gen Z has an inflated sense of what salary they need to make to be considered successful — and they don’t want money for the reasons you think.
The financial services firm surveyed 2,203 American adults to determine their opinions and goals regarding “financial success.”
They discovered that while Gen Z makes the least amount of money they think they need the most while Baby Boomers make the most but have the lowest financial goals.
Americans think they need an average salary of about $270,000 annually to succeed.
But that amount varies drastically by generation — with a nearly $488,000 gap separating Gen Z and Boomers.
Gen Z thinks they need a $587,797 yearly pay to be successful while Boomers would settle for $99,874 a year.
Meanwhile, Millennials think bringing home $180,865 a year would be sufficient for success but Gen X believes they need a yearly salary of $212,321.
However, the majority of Americans are making nowhere near their successful salary goal, according to the most recent data from the U.S. Bureau of Labor Statistics.
Salaried workers cashed out with a median weekly earnings of $1,165 in the third quarter of this year, which would add up to a $60,580 per year salary.
Paychecks did increase by an average of 4.2% from last year but struggled to make that much of a difference due to the 2.6% inflation rate the Consumer Price Index for All Urban Consumers reported.
Average third quarter salaries of 2024
- Ages 16-19: $633 per week or an estimated $32,916 per year
- Ages 20-24: $778 per week or an estimated $40,456 per year
- Ages 25-34: $1,107 per week or an estimated $57,564 per year
- Ages 35-44: $1,301 per week or an estimated $67,652 per year
- Ages 45-54: $1,339 per week or an estimated $69,628 per year
- Ages 55-64: $1,268 per week or an estimated $65,936 per year
- Ages 65 and over: $1,121 per week or an estimated $58,292 per year
About (51%) of adults believe that a well-paying job is the best way to achieve financial success, but many people know that it’s not just about what your paycheck brings in.
Americans also describe financial success as accumulating an average net worth of $5.3 million — although that also varies by generation.
Gen X and Millennials agree that the dream would be to have a net worth of about $5.5 million. But Gen Z and Boomers are much farther off from agreeing.
The youngest generation of adults thinks they need a net worth of $9,469,847 to achieve financial success while Boomers only aspire to $1,049,172.
But it’s not that Americans want to see the highest number sitting in their bank account. The real value is what that money would allow them to do.
Only 27% ranked wealth as the highest measure of success.
Instead, a majority (59%) said the most important factor was happiness — defined as being able to buy things and experiences you love — followed by the luxury of free time (35%) to pursue personal passions.
But how can one reach financial success?
Americans believe in the “Factor of Four”: hard work (84%); talent (65%); who you know (55%); and luck and circumstance (51%).
Many adults also think it pays off to be a visionary (36%) and then outwork everyone (32%) to reach their goals.
But for 1 in 5 of the younger generations (Gen Zers and Millennials 19%), they just have to “fake it ‘til you make it.”
“Fortune favors the bold, and people feel success is within their grasp with the right combination of dreaming and planning,” Rebecca Rickert, Head of Communications at Empower, said in a statement.
“It’s about disciplined, smart money choices, but overall people define financial success as very meritocratic, and a little serendipitous. There’s a sense that effort and outperformance will take you far.”
However, not everyone is optimistic about their earnings.
Nearly half of Americans (47%) don’t think they’ll ever achieve the level of success they want with more than one-third blaming the economy or income instability.
But even if they did reach the initial goal they set, a whopping 61% admit that they believe you can never have enough money.
