Having a “good” salary is subjective. It can depend on your level of experience, industry and geography.
And a new study shows how you define financial success may also have to do with your age range. How much do you need to make to be financially successful?
The magic number varies by generation. That’s according to a new study by the financial services company, Empower.
For Gen Z, that’s people born between 1997 and 2012, their salary of success may be staggering to some, $588,000 a year!
In comparison, baby boomers say you’re well-off with a salary of just under $99,000 a year.
Some speculate that social media influencers are painting unrealistic expectations for the younger generations. Others point to the realities of inflation and high living costs.
But what could help increase wealth for young people? The great wealth transfer.
Gen Z and millennials expect to inherit $700,000 on average from their parents over the next decade.
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But even though 68% of young people expect an inheritance, only 40% of parents will leave one. The reasons?
People are living longer, and long-term healthcare costs are increasing. It all adds up to less money, if any, left for the kids.
But no matter how they’ll get it, the Empower study says 71% of Gen Zers do expect to achieve their level of financial success within their lifetimes.
Another reason there may not be much money left to millennials and Gen Xers is the fact that Gen X has less in savings than their parents did, and they will spend more on taking care of their Boomer mom and dad.
