- A new surveyfrom consumer financial services company Bankrate claims most Americans don’t feel financially secure. More than a quarter of respondents said they would need to earn $150,000 to achieve financial security, well above the U.S. Median salary. Experts say while double digit inflation over the past few years plays a role, so also does lifestyle creep.
An increasing number of Americans say they need more money to feel financially secure, a phenomenon that is only partly based on finances, experts say.
About 77% of Americans said they don’t feel financially stable, up several percentage points since 2023, according to a Monday survey by Bankrate. And to actually feel financially secure, just over a quarter of Americans say they would need at least $150,000, well above the U.S. Median salary of around $62,000 per year, according to the Bureau of Labor Statistics.
Partly to blame is high inflation, claimed Bankrate, which has increased by about 24% since the onset of the pandemic in 2020. That means the $150,000 salary survey respondents are seeking in 2025 is equivalent to around $120,000 in 2020 dollars, according to the BLS.
While salaries have risen since before the pandemic, so have the prices of some mainstays of American life such as homes and cars, which are both up double digits since 2019, said Pepperdine University business school professor Brandon Parsons.
“We experienced some of the highest inflation levels since the 1970s, and this shock has led to some of the perceptions of a higher cost of living, whether exaggerated or not,” Parsons told Coins2Day.
Still, salary perceptions can be based on more than just the economy, said NerdWallet senior economist Elizabeth Renter. A report from NerdWallet last year found 42% of Americans making six figures or more claim to be living paycheck to paycheck.
“When it comes to income, I think it’s human nature to always want at least a little more than what we have,” Renter told Coins2Day. “Lifestyle creep means that many of us end up spending more on housing, clothing, entertainment, and everything else as our income rises.”
Despite Americans’ perception that they need higher salaries, the economy and markets seem to be in good shape. The U.S. Added 139,000 jobs in May, surpassing analyst expectations, while the unemployment rate held steady at 4.2%. Meanwhile, stocks are back near record highs, despite recent geopolitical uncertainty.
However, people are still feeling the pressure of rising prices, and thanks to inflation, even the $150,000 wage survey respondents seek no longer affords the same luxuries as before, Bankrate economic analyst Sarah Foster told Coins2Day.
“As today’s pricey economy makes everything from housing and education to health care and childcare more expensive, many Americans are finding that they struggle to get by on even a six-figure income. In many high-cost cities and states, $150,000 is considered a middle-income salary,” she said.