Study: $100K Annual Income Needed to Ease Financial Worries for Most Americans

A recent study by Edelman Financial Engines reveals that many Americans believe a six-figure income is necessary to alleviate financial stress.

The survey, which polled 3,000 Americans aged 30 and older, found that 58% of respondents feel they need to earn at least $100,000 annually to ease concerns about daily expenses. Andrea Piacquadio / Pexels

The need for a higher income was particularly pronounced among younger age groups.

For those in their 30s, 71% cited the $100,000 threshold, while 75% of respondents in their 40s agreed with this figure. Karolina Kaboompics / Pexels

Even more striking, a quarter of all Americans surveyed believe they need to earn $200,000 per year to eliminate financial stress completely. Karolina Kaboompics / Pexels

These findings come at a time when Americans continue to grapple with high inflation and living costs.

Although August saw a slight decrease in inflation rates, with the Consumer Price Index rising by 2.5% year-over-year - "the smallest 12-month increase since February 2021" - consumers still face significant price increases in essential categories like food and shelter. Karolina Kaboompics / Pexels

The study also shed light on Americans' perceptions of wealth. Only 12% of respondents consider themselves wealthy, with nearly two-thirds stating that having $1 million would make them feel wealthy. Tima Miroshnichenko / Pexels

Additionally, 44% of Americans view credit card debt as the most significant obstacle to building wealth. Pixabay / Pexels

Amin Dabit of Edelman Financial Engines commented on the findings, stating, "Americans aren't feeling overly confident about the state of their finances. Part of these worries stem from external pressures, like inflation or a turbulent election economy, while some are individual pressures, such as family responsibilities and mounting credit card debt." Miguel Á. Padriñán / Pexels

The economy and personal finances emerged as major sources of anxiety, with 49% and 48% of respondents citing these as their biggest concerns, respectively. John Guccione / Pexels

Politics was also a significant worry for 37% of those surveyed. Element5 Digital / Pexels