For years, researchers have tried to pinpoint the amount of money Americans need to earn in order to feel happy. One oft-cited study from 2010 put that number at just $75,000, but subsequent research has found that happiness can actually keep increasing until your income crosses $100,000.
A new study by the financial services company Empower found that many Americans—nearly 60%—still see happiness as a key measure of success. But the annual income they see as an indicator of financial success is much higher, at $270,000, along with an overall net worth of $5.3 million.
There are clear differences by generation, per Empower’s findings. Gen X and millennials had similar ideas of what constitutes financial success, ranging from about $180,000 to $212,000. Boomers, on the other hand, cited an income of just under $100,000, while Gen Z’s perception of financial success was far beyond that of any other generation at over $587,000.
While half of the people surveyed believed they would eventually outearn their parents, about 47% felt they would not find the kind of success they were striving for. Across generations, people cited concerns about the economy and a lack of income stability as reasons for why they might not achieve the financial success they desired—but millennials were more likely to say that it was harder to find that success when compared to other generations.
Even as they express concerns about their ability to reach financial success, however, younger Americans seem to maintain some optimism about what their future might hold. At least 70% of millennials and Gen Z believe they will find financial success.
Still, only 27% of respondents saw wealth as the most important factor in financial success, also citing physical well-being and free time as other important elements—a finding that aligns with what other studies have indicated about how Americans think about the matter.
In an exclusive Harris Poll conducted last year for Fast Company, 68% said they defined wealth as being able to afford necessities and also put aside some savings; just 11% saw it as being able to afford “extravagant purchases.” In other words, despite inflation and the rising cost of living, it seems financial success alone cannot guarantee happiness—though a bit more money doesn’t hurt.
