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The average American’s annual income is just over $44,000, according to the Bureau of Labor Statistics. That figure takes into account earnings from a wide range of workers, from age 16 to those over age 65. The data also breaks down the average income by age, so people can see how their current income compares.
The youngest earners make the least amount of money
It stands to reason that the younger a person is, the less income they have. On average, 16 to 18-year-olds earn around $22,000 per year, while 20 to 24-year-olds earn just over $28,000 per year.
Because of their lack of experience, schooling, and on-the-job training, American teens and young adults work in lower paying jobs. As they embark on their carer and gain skills, they will see their incomes rise.
Highest incomes occur in the middle years
American workers see a large jump in their earnings when they enter their late 20s. On average, workers who are ages 25 to 34 years old earn around $40,000 per year, while the median income for adults ages 35 to 64 is around $50,000 per year.
With progressive responsibility and several decades of experience, it makes sense that this age group earns the most out of all working adults. Gaining a college degree is one of the surest ways to see a higher salary over a lifetime when compared to someone without.
Seniors see a decline in average income due to retirement
When it comes to earning power, elderly adults usually see their incomes decline as they enter retirement. On average, aging Americans earn around $47,000 per year. At this stage, most seniors depend on their own retirement savings, government programs, and other investments.
Unfortunately, more elderly adults than ever are in danger of not having enough for retirement. It’s important to make long-term plans when at the beginning of a career to ensure living comfortably in the golden years.