Gen Z Workers Say They Require A $200K Salary To Feel Secure — But Their Average Salary Is Only $60K
Many Gen Zers are struggling to be financially independent due to the high cost of living.
View Apart | Shutterstock With the cost of living increasing exponentially and many Americans struggling to afford basic necessities like rent and groceries, many people are advocating for employers to start paying salaries that reflect the ever-changing economy.
For Gen Zers in particular, recent data revealed the toll the current economy has taken on their livelihoods and what it would take for them to feel financially independent.
Gen Z workers say they require a $200K salary to feel secure.
A survey from Bankrate, which polled 2,407 U.S. adults, looked at how much Americans think they need to earn to feel financially secure. For the most part, workers said they would need to earn nearly $200,000 annually — on average, $186,000 — to feel comfortable. However, some generations, especially Gen Zers, were more worried about what they needed to feel secure.
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The survey found that Gen Z respondents said a $200,000 annual salary would ensure their financial security. Millennials said they'd need $199,000, and Gen Xers and baby boomers' financial security targets were $183,000 and $171,000, respectively.
Unfortunately, many Gen Zers aren't making nearly that much money at their jobs.
In a Business Insider survey, 44% of Gen Zers admitted they're feeling financially vulnerable. According to the Survey of Consumer Finances, the median net worth of Americans under the age of 35 is $39,040, and their median income is $60,530.
A lot of Gen Zers have been vocal about how hard it is to live in this economy compared to the way their parents used to live. Buying a home, getting married, and having children are becoming more of a pipe dream than a reality.
According to financial expert and CEO of Epic Financial Strategies Robert Gill, the salary you need to make to live as the older generations did 40 years ago.
"If your parents made $30,000 40 years ago in 1983, you’d have to make $162,342 in 2023 just to have the same purchasing power adjusted for inflation," Gill admitted.
Most Gen Zers aren't financially independent and have to rely on their parents for support.
Despite young adults in today's society being more likely than their parents to have a four-year college degree, work full time, and have higher wages than their parents did 30 years ago, they are also more likely to have outstanding student loans, the Pew Research Center found.
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Between student loan payments and inflation causing rent and housing costs to rise, 31% of Gen Zers are living with their parents because they can’t afford to buy or rent their own space, a separate report by Intuit Credit Karma found.
Even those who live on their own still lean on their family for financial support. Only 45% of young adults, ages 18 to 34, say they’re completely financially independent from their parents.
While it may seem ludicrous that young people feel $200K is their earnings goal, many things in today's society are simply too costly because salaries do not reflect the current economy. It's disheartening to realize that young adults, the future of this country, are struggling to support themselves, which proves that things need to change for them.
Nia Tipton is a Chicago-based entertainment, news, and lifestyle writer whose work delves into modern-day issues and experiences.