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Financial security is subjective and often depends on factors like income and personal goals — but in terms of hard numbers, $75,000 may be a solid starting place.
Recent research from the law firm Atticus revealed that, on average, Americans say they they need $74,688 a year in order to feel financially secure. That's based on survey results from 1,000 U.S. adults throughout the U.S. quizzed on how various financial and personal challenges impact their financial stability.
What the data says
That $74,688 figure matches up with data from the U.S. Census Bureau, which found in 2022 that the median household income in the U.S. was $74,580. But different people have different ideas about financial security.
Despite having greater need on paper, for instance, Americans with lower incomes reported needing a significantly lower amount needed to feel financially secure: just $51,728 on average. People with medical conditions said they needed $68,498 on average, and workers with high-risk jobs reported needing $73,409, to feel good about their money.
When asked to rate their level of financial security, most low-income people (85%) and respondents with medical conditions (63%) rated their level of security as “low," while 44% of workers with dangerous jobs said the same. Thirty percent of people with medical conditions rated their financial security as “moderate," while only 7% of respondents from that demographic rated it as “high.”
Why it’s important
From the rising cost of housing to growing credit card and auto loan debt, everyday Americans are facing mounting obstacles to financial security. Difficult economic circ*mstances can make individuals with additional personal or monetary challenges more vulnerable to feeling less financially secure.
According to the Atticus survey, these financial struggles can have consequences for people’s mental health. More than half of people (58%) with medical conditions said they face severe mental health effects because of their financial issues. A similar share of low-income respondents and workers with dangerous jobs also reported having mental health struggles due to finances.
Americans with medical conditions tend to face significant challenges when it comes to money: A whopping 92% said they face problems because their health gets in the way of their ability to work. This makes it difficult for about 56% of them to save up for things like a home or higher education, and almost half said they struggle to save for emergencies or retirement.
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FAQs
To feel comfortable or financially secure, Americans need a salary of roughly $233,000 a year on average, Bankrate found.
How much money do you need to feel financially secure? ›
Financial security is subjective and often depends on factors like income and personal goals — but in terms of hard numbers, $75,000 may be a solid starting place. Recent research from the law firm Atticus revealed that, on average, Americans say they they need $74,688 a year in order to feel financially secure.
What salary is considered financially stable? ›
The median household income in the U.S. is just under $75,000, so it makes sense that the largest proportion of those surveyed (45%) said that it's possible to be financially stable by earning between $50,000 and $100,000 a year.
Are Americans financially secure? ›
Feelings of financial insecurity among Americans have reached their highest point in at least a decade. A third of American adults in Northwestern Mutual's 2024 Planning & Progress survey said they don't feel financially secure. That's up from 27% in 2023 and the highest measure going back to 2012.
What is considered a good salary in the US? ›
A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes. This is nearly $10,000 higher than what the average salary currently is.
Is $80,000 a year a good salary? ›
By just about any measure, earning $80,000 a year is a good salary. It's about $5,000 higher than the U.S. median household income, per Census data.
What is a comfortable salary for a single person? ›
The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people. Living alone comes with added costs that can be more than double what you'd spend if you lived with someone else — otherwise known as the “singles tax.”
How many Americans live paycheck to paycheck? ›
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year.
What is the average salary in the US? ›
The Takeaway
The average annual average salary in the U.S. is $63,795. The median annual salary, which is often less skewed by outlying numbers, is $59,384. It's worth noting that average and median salaries vary quite a bit by state.
What percentage of Americans make $75,000 a year? ›
Percentage distribution of household income in the United States in 2022
| Annual household income in U.S. dollars | Percentage of U.S. households |
|---|
| 35,000 to 49,999 | 10.6% |
| 50,000 to 74,999 | 16.2% |
| 75,000 to 99,999 | 12.3% |
| 100,000 to 149,999 | 16.4% |
5 more rowsNov 3, 2023
Inflation, lack of savings and credit card debt
Among those who consider themselves to be living paycheck to paycheck, financial stressors vary. Their worries are not surprising. Inflation has been rising in 2024, according to the Bureau of Labor Statistics, even if incrementally.
Why are Americans financially struggling? ›
36% of U.S. adults have more credit card debt than emergency savings, as of January 2023, the highest percentage since 2011. Concerns over job security add additional financial stress. 33% of American workers were worried about their job security, as of April 2023.
What percentage of Americans have $100,000 for retirement? ›
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
How many Americans make over 100k? ›
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
Can you live comfortably on 70000 a year? ›
If you're single and have a salary of $70k, you are part of above-average earners in the U.S. Depending on where you live, you may be able to live comfortably on a $70,000 salary as a single person.
Is $100,000 a good salary in usa? ›
A $100,000 salary is considered good in most parts of the country, and can cover typical expenses, pay down debt, build savings, and allow for entertainment and hobbies. According to the U.S. Census, only 15.3% of American households make more than $100,000 annually.
What salary can you live comfortably on? ›
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
How much do you need to make a year to live stable? ›
An individual must earn $96,500 a year before taxes to afford housing, groceries, transportation and entertainment, while also paying off debt and putting some money into savings, according to personal finance website SmartAsset.
