At Work

Average household income. How are you doing?

Households led by someone between the ages of 25 and 34 earn an average of $66,470 a year, according to the 2016 Consumer Expenditure Survey (latest available)

Those aged 35 to 44 earn an average income $92,576.

Those aged 45 to 54 earn an average yearly income of $99,423. 

Those aged 55 to 64 earn an average yearly income of $80,474. 

Source: Bankrate

Keep in mind that household income includes the income earned by all individuals living in the home. Generally, but not always a couple.

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7 replies »

  1. Who cares what others make? Why should I care about what others make? How I am doing has little to do with what others earn, does it?

    Similarly, wages/taxable income are but one part of any measure of financial well being. You need to adjust for differences in wealth, non-taxable income (such as Social Security benefits), and of course, differences in expenses. Twin sisters who live next door in comparable size/value of homes, where one owns the home outright and has no other debt, compared to the second who has $1,000+/month mortgage payments and $50,000 in credit card debt – probably don’t have the same living standards.

    Dwayne, FYI, you are looking at median income, I believe Dick’s numbers are average income. It is not surprising to see that average income > median income.

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    • Jack, you know the answer to your first questions, especially in times of the fair share rhetoric. It’s good to know where you stand when politicians talk about the wealthy. One M4A “study” says costs will rise for the top 20%. I bet most people have a distorted view of where that begins.

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    • I agree with you on who cares what others make unless you feel that you are not making enough or the average and then you might want to examine your own life, expectations, and debt. It could be time for a change in job and required job skills to do it, if that is what you want.

      I do find the data interesting. Makes you wonder about the $15/hr min wage and who the 1% are. It makes you ask some critical questions about the BS coming from some of our newly socialist politicians and about where they get their data too. Of course it all has to be used in the correct context which is rarely presented.

      Benefitjack, thanks for pointing out median is not average. I often mix up mean and median.

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  2. Something is wrong with the data here. According to US Census Bureau “Household Income: 2016 American Community Survey Briefs, the 2016 median household income is $57,617 which to me makes sense since half would make more and half would make less. Since there are a few million people on welfare or retired and are on Social Security, I trust this number just a little bit more than the $66,470 (the lowest of the groups from above). Implied by the Bankrate report is that all households are employed making good money which is not true.

    If this was true, $15 /hr is not needed (two people making $15.98/hr = $66,470). But I can walk around my city and see underemployed people in poor housing everywhere. The retail jobs at our malls are not paying $15/hr.

    I’ll have to read both reports in detail to figure out why by I suspect that since one report is from Bankrate it probably surveyed people with loans and bank accounts only. Aboved does stated “earn” for those numbers but in my area, factory work paying $15/hr is a great job.

    https://www.census.gov/content/dam/Census/library/publications/2017/acs/acsbr16-02.pdf

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    • Any data based on a survey can be suspect. It’s like asking people if they can afford their prescriptions, we need to define “afford.”

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    • Don’t confuse median income and average income. There is a difference.
      There is also a difference between earned income and total income. Different surveys don’t always measure things the same way. Comparisons are difficult.

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  3. I have never earned over $60,000 in one year in my entire life. But, thanks to God, because I have been smart with the money I did earn, I was able to amass a nice nest egg that enabled me to retire early at age 55. And now after 11 years in comfortable retirement, my nest egg has increased.

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