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Can you measure financial success? Many Americans say they can. According to a survey by financial services company Empower, the average person’s idea of financial success is a salary of around $270,000, or a net worth of $5.36 million.
Financial experts say these expectations are reasonable and can help you achieve some degree of financial independence. But it depends on certain factors, including where you live, your current lifestyle, and what you want to do with your money.
Key Takeaways
- In an Empower survey, respondents measured financial success with an average annual salary of $270,000 and a net worth of $5.36 million.
- Younger generations have a higher bar for what they consider financial success.
- Some of the barriers to success include overspending, debt, the economy, and a lack of financial knowledge.
Measuring Success: Generational Differences
Empower’s survey, called Secret to Success, polled 2,203 people over 18 across the U.S. The results were adjusted to reflect the country’s adult population.
“Younger generations are reshaping what success looks like,” said Rebecca Rickert, head of communications and consumer insights at Empower, in an email to Investopedia. “It’s no surprise that personal progress is getting benchmarked socially as much as financially.”
Younger Americans have a higher bar for financial success. Gen Z measured it with an average salary of $587,797 and a net worth of about $9.47 million, while millennials set the benchmark at an average salary of $180,865 and a net worth of almost $5.64 million.
Certified financial planner John Bell says these expectations are realistic. But attaining true success with salaries of this size depends on your personal situation (say, if you are part of a two-income family with kids) and your location.
“In more expensive areas, if you’re both making $200,000 to $250,000, you could argue that $270,000 is something you could barely live on because you’ve got kids in private schools, a large million-dollar house with a large mortgage,” he says. “But for most of the country, beyond the very high cost of living areas, that ($270,000) certainly would be a great starting point.”
Note
The salary expectations for Gen Xers and baby boomers surveyed were $212,321 and $99,874. Gen X respondents said they believed they could achieve financial success with a net worth of about $5.29 million, while boomers said they only needed $1.05 million to be financially successful.
Is Money the Key to Happiness?
Money isn’t necessarily the key driver of what leads people to success. According to the survey, most people measured success with happiness (59%) compared to 27% of people who cited wealth.
“I think the two (happiness and wealth) are interrelated,” says Patrick Huey, a 20-year veteran in the financial industry. “But, I think there’s a certain point where having enough is enough. And it’s not so much that you’re happy, but you’re satisfied.”
Both Huey, who is the owner and principal advisor of Independent Victory Planning, and Bell, the financial planner, say that people’s attitudes toward money have changed over the decades.
“People are looking at their parents and saying, ‘My mom and dad worked till 65, 67 years old, and they got very little time to enjoy retirement. I don’t want that to be me. I’d rather work on my own terms,'” Bell says. “Money becomes a tool to get you there, but it’s not the destination. ”
Note
Of those who responded to Empower’s survey, 35% said they feel physical well-being is a key to financial success, while 35% believed free time to do the things you want helped drive success.
What’s Holding People Back?
The table below highlights some of the most common obstacles that people believe are holding them back from financial success:
| Overspending and not budgeting | 37% |
| Debt | 36% |
| No savings | 35% |
| Economy | 35% |
| Income instability | 30% |
| Not setting clear financial goals | 28% |
| Procrastinating or delaying financial planning | 26% |
| Lack of financial knowledge | 20% |
Even with such gloomy hurdles, 58% of Americans said they feel optimistic about being financially prosperous during their lifetime. Younger generations said they feel more optimistic, with 71% of Gen Zers and 70% of millennials feeling more confident compared to only 53% of Gen X and 45% of baby boomers.
“Success is also grounded in stability. For Gen Z and millennials, it means being able to manage student debt, afford rent or a mortgage, and build a safety net,” Rickert said. “People are navigating rising costs of living, economic volatility, and housing headwinds—so the bar isn’t higher, it’s just different. It’s more about financial resilience.”
Planning Is the Key
Overcoming the obstacles to financial success can be as simple as sitting down and creating a financial plan, especially if you have specific goals such as paying bills on time, owning a home, or retiring by a certain age.
“I’m always a big fan of sitting down and writing a plan,” Huey says. “If you’re feeling lost, feeling like you just can’t get your mind wrapped around what it’s going to take, that planning process is a great place to start.”
He also emphasizes reviewing your plan biannually, and he advises clients to let him know before they make major financial decisions, such as taking an expensive trip or making a big purchase. That allows them to ensure that there’s no long-term impact on their financial plan.
Laying out your short-term goals is just as important as setting your long-term plans. But be prepared to make some sacrifices along the way, Bell says. “Anybody can retire if they plan correctly,” he says. “But maybe you retire later. Maybe you don’t live in the same house that you grew up in. There are trade-offs. You just have to be willing to give on some things or readjust your expectations of retirement so that you’re being honest.”
The Bottom Line
The definition of financial success can be very subjective. Empower’s survey sheds some light on how people feel about it and what they need to get there. Although many Americans believe a high salary and net worth are crucial to achieving prosperity, respondents also feel that a high-paying job and taking risks are equally important.
If you find yourself at a loss as to where you’re headed financially, speaking with an expert may help overcome your obstacles and put you on the path to success.
