Americans View $270,000 Salary and $5.3 Million Net Worth as Path to Success
A new study conducted by leading financial services firm Empower reveals that only 37% of Americans currently consider themselves financially successful, while 58% believe they can achieve financial success over their lifetime. The average annual salary recognized by participants as indicative of success is $270,000, with a targeted net worth of $5.3 million.
The research highlights that Americans view happiness as the most significant indicator of financial success, with 59% prioritizing the ability to spend on enjoyable experiences and passions. The study also emphasizes the "Four Factors": 84% believe hard work is essential, 65% attribute success to talent, 55% to networking, and 51% to luck and circumstance. Among those earning over $100,000, belief in hard work rises to 40%.
Rebecca Rickert, the head of communications at Empower, notes that people perceive financial success as a combination of merit and luck, with disciplined and smart financial choices at its core. Despite this optimism, nearly half of Americans think they will never reach their desired level of success, and only half believe they will be financially better off than their parents.
Economic conditions, income instability, and lack of financial knowledge are seen as significant barriers to success, with 35% blaming the economy and 30% citing income instability. Establishing clear financial goals, avoiding procrastination, and overcoming debt are also considered crucial for achieving success.
Younger generations remain the most hopeful; 71% of Generation Z and 70% of Millennials expect to achieve financial success, compared to 53% of Generation X and 45% of Baby Boomers. Tangible achievements, such as paying bills on time, homeownership, and being able to travel, are important indicators of success for many.
The research further indicates that having a financial plan, contributing to retirement savings, and investing in stocks are considered key steps toward greater financial success. One in three individuals places significant value on good financial advice.
Empower's "The Secret to Success" report identifies well-paying jobs, savings, and smart investment choices as the most reliable paths to success. The report also addresses societal pressures, generational differences, and the importance of physical health in the context of financial success.
Conducted by Morning Consult with national representative weighting, the study encompasses 2,203 American adults. Empower, a leading provider of financial planning and retirement services, manages approximately $1.8 trillion in assets for 19 million investors. For more detailed information, the full "The Secret to Success" report is available on Empower's content platform, The Currency™.