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Financial security used to mean a stable job and the ability to cover a surprise expense without panic. Of course, that baseline has gotten a lot more expensive today.
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Almost half of Americans have said they need to make at least six figures a year to be financially secure, and that number rises dramatically depending on where you live, your current financial situation and your generation. Below, we will take a deeper dive into how those of different ages define financial security, as well as the dollar amount they deem necessary to attain it.
What Financially Secure Means
Financial security is typically defined as the ability to cover basic needs, handle unexpected expenses without going into debt, and reliably fund your long-term goals while still having money left over for discretionary spending. According to Bankrate's financial freedom survey, more than three-quarters of Americans said they’re not completely financially secure.
One of the problems contributing to the high financial insecurity is inflation. The BLS CPI inflation calculator found that $100,000 in January 2020 is the equivalent of about $129,900 in May 2026. If your paycheck hasn’t kept up with inflation, you’re making less than you were five years ago.
Gen Z: $100,000 to $150,000
Most Gen Zers are just starting out in the workforce, facing entry-level wages, the rising cost of living and student loan debt that kicks in before they even get job stability. Around 20% of Gen Z said they’d need to earn $150,000 a year on average to feel financially secure or comfortable.
For most of Gen Z, financial security is being able to cover basic needs and pay down student loans while also building an emergency fund and contributing to retirement accounts. A $100,000 salary in cheaper regions and $150,000 in expensive cities would offer financial security.
Millennials: $150,000 to $200,000
Millennials are currently facing the highest financial burden of all generations. They’re juggling mortgage payments, student loans, childcare and catching up with retirement savings.
Some 26% of millennials said they’d need $150,000 or more to feel financially secure, with 79% saying they don’t have that much now. In moderately priced areas, financial security starts around $150,000, and it climbs to $200,000 in high-cost metros. This income allows you to own a home without being house-poor, pay for childcare, set aside enough for retirement and enjoy experiences like occasional travel.
Boomers: $100,000 to $140,000
Many boomers are approaching retirement or have already retired. For them, income alone isn’t enough to feel secure financially. A paid-off house, Social Security checks or a pension can take care of some expenses a paycheck used to. That’s why boomers are likely more financially secure than any other generation.
For boomers with assets, $100,000 in income might be enough, while for those still renting or with debt, the bar is set higher at close to $140,000.
The Bottom Line
More than half of Americans (56%) said they need to earn more than they currently make just to feel financially secure, and that’s across every generation. This is largely due to the rising cost of living and inflation.
The older you are, you may not need more income, especially if you started building wealth early in your career. For Gen Z and millennials who need a higher salary, find ways to increase your income and direct as much as you can toward securing your financial future.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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