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Key Takeaways
- Median household income ranges from $49,073 for those 75 and older to $91,878 for those ages 45 to 54, Fed data show.
- Income typically peaks for households aged 45 to 54, then declines after 65, while younger groups earn less.
- Small, steady moves—like side gigs, new skills, and disciplined saving—can strengthen financial health at any stage of life.
Household income can vary dramatically by age group in the United States. According to the most recent Federal Reserve data, younger households tend to earn less, while earnings plateau for older Americans. Knowing where you stand can help you understand your financial health and find ways to strengthen it.
How Household Income Differs by Age Group
According to the Federal Reserve’s latest Survey of Consumer Finances, the median income for a family in 2022 (the most recent data available) ranged from $49,073 for those 75 or older to $91,878 for those ages 45 to 54. Those 75 and older presumably have less work-related income and are more likely to have income from sources like pensions, retirement account withdrawals, and Social Security payments.
The 45 to 54 age bracket represents peak earnings for most households, as median income tends to reach its highest levels during this phase of life. At this stage, built-up experience, promotions, and two full-time earners often combine to push family income to its highest point.
(Experts tend to use medians instead of averages to reduce the impact of those with exceptionally high or low incomes. A median is a middle-of-the-road number—in this case, it’s the point where half of incomes are above it, and half are below it.)
For the Fed’s survey, family is defined as “the economically dominant single person or couple” (whether married or not) and all others in the household who are dependent on them. And the included income sources are “wages, self-employment and business income, taxable and tax-exempt interest, dividends, realized capital gains, unemployment insurance, food stamps and other related support programs provided by the government, pensions and withdrawals from retirement accounts, Social Security, alimony and other support payments, and miscellaneous sources,” according to the Fed.
Why This Matters for You
Every three years, the Federal Reserve’s Survey of Consumer Finances shows how earnings vary by age, career stage, and generation, and how those differences have evolved since 1989. By comparing your family’s income to these national benchmarks, you can better understand your financial position and how different factors shape earning power over time.
How Household Income Has Changed Over Time
The Fed’s survey looks at household pretax incomes from 1989 to 2022. These figures are indexed for inflation, meaning that all the incomes are adjusted to be in 2022 dollars. This makes comparing incomes across the years easier.
The survey data from 1989 to 2022 show some long-term trends:
- For workers under 35, the median pretax income is relatively low and rises sharply in the next age bracket/career phase (ages 35-44).
- Millennials (roughly 35 to 44 years old) and Gen Z (under 35 years old) are earning more than previous generations did at their respective ages.
- The 45-54 age bracket earned the highest income (or was tied) in every survey year.
- Income begins to level off after the ages of 45–54, and decreases notably for workers aged 65 and older.
- Income for the 55-64 and 65-74 age groups grew the most over time.
How To Boost Your Income at Any Age
If you’re looking to increase your income—whether by earning more now or setting up for future gains—these strategies can help strengthen your finances and improve long-term security.
- Build your skills to increase your earning power. “Upskilling and getting additional certifications should be something that everyone does,” says Michael McMillan, a professor at the University of Maryland’s Robert H. Smith School of Business. “It’s important that people always think about the next job and what skills you need to have for that next job.”
- Utilize company benefits. If you’re employed, “look at what educational benefits and other things that companies offer and then take advantage of it,” McMillan says. “You may be able to turn that into a higher paying job, either at your current employer or at a new employer.”
- Consider a side gig. Depending on what skills and talents you have, a side job can be a way to boost your income. Consulting is a common secondary job, and if you have a master’s degree, for example, a part-time teaching position in the evenings or on weekends might be a viable option, McMillan notes. “There’s no negative stigma attached to having a second job,” he said.
- Save and invest for the long term. Placing a cash reserve in a top high-yield savings account—and shifting some funds into long-term investments—can help build wealth and supplement job-related income. As your earnings increase, it’s important to keep your spending in check, McMillan says, so your expenses don’t increase as your salary increases, letting you maintain your savings.
Small, consistent steps can make a meaningful difference in your financial health regardless of your income. “It’s not how much you earn,” McMillan says. “It’s how much you save.”
