According to a new survey, earning $270,000 a year and having a net worth of $5.3 million are the key metrics for financial success in the US. However, with the average salary at $67,000 and many Americans struggling to own homes, these targets seem out of reach for most.
In the United States, financial success is often seen as the ultimate achievement, but how much do you actually need to earn to reach that milestone? According to a recent survey by Empower, the number may surprise you. To be considered financially successful in the U.S., an annual salary of $270,000 is often the benchmark, along with a net worth of $5.3 million.
The Reality: Far Beyond the Average American Income
For most Americans, these numbers are far out of reach. In 2023, the average salary in the U.S. was about $67,000, as reported by the Social Security Administration. Furthermore, the mean 401(k) balance at Fidelity Investments this year stood at just $127,100. With homeownership often cited as a major factor in building wealth, many Americans still struggle with housing affordability, preventing them from reaching these lofty financial goals.
Fewer Than 4 in 10 Americans Feel Financially Successful
Despite these staggering figures, fewer than four in 10 people consider themselves financially successful. According to the survey, nearly half of respondents (47%) don’t believe they will ever reach the financial success they aspire to. The biggest obstacles to achieving success were identified as:
- Economic conditions (35%)
- Irregular or insufficient income streams (30%)
What Defines Success for Most Americans?
Interestingly, not everyone ties their sense of success to a specific monetary figure. 43% of survey respondents said they didn’t feel that success was defined by a set amount of money. For many, the most important measure of success is happiness, which was identified by nearly six in 10 participants as the key to a fulfilling life. The survey defined happiness as “being able to spend money on the things and experiences that bring the most joy.”
In addition to happiness, other significant measures of success included:
- Physical wellbeing (cited by over a third of respondents)
- Free time and work-life balance
The Gap Between Ideal and Reality
While many Americans prioritize happiness and wellness over a high salary, the financial realities often make it difficult to achieve these goals. The survey reveals a disconnect between the financial ideal and the lived reality for many, with rising living costs and stagnant wages contributing to a sense of economic insecurity.
Redefining Success Beyond the Dollar Amount
While earning $270,000 and having a net worth of $5.3 million may seem like the ultimate sign of success in the U.S., a significant portion of the population is redefining what it means to be successful. For many, happiness, health, and personal fulfillment now outweigh a specific salary number. However, addressing the financial barriers that many face, such as economic instability and insufficient income, will be crucial to helping more people achieve both financial and personal success.
