20 Facts About Six-Figure Earners in America Uncovered by Study
Six-figure salaries are often a sign of success. But $100,000 isn’t that much money in certain contexts.
Pew Research Center analyzed trends among six-figure earners, and these are some of the key findings.
1: They’re Older Than You Think
Celebrities and tech moguls make it seem like growing rich at the ripe old age of 27 is par for the course, but in truth, Americans usually struggle in their early years. While only 7% of 30-year-olds make six figures annually, 18% of 65-year-olds do.
2: They’re More Likely To Be Male
According to Pew Research Center, there are 9% more males than females making over $100,000 per year. Though the gender pay gap has been steadily decreasing, women are still overrepresented in lower-paying jobs.
3: Unless They Live in San Jose
San Jose, California, has the highest percentage of women making over $100,000 per year (34%). San Francisco, California, is a close second at 31%.
4: More People Are Making It
Between 2017 and 2022, the number of people making $100,000 or more annually increased by 2.97%. Given rising wages, the number of $100,000+ households should continue to grow.
5: It’s Still a Small Club
As of 2022, only 15.5% of American households brought in $100,000 to $149,000. An even smaller 10.3% brought in more than $200,000.
6: They’re Likely To Be White
Thirty-seven percent of White households make more than $100,000 per year. Only 22% of Black households hit the same mark.
7: They’re Even More Likely To Be Asian
Over half of Asian households bring in more than $100,000 per year, and one in five makes over $200,000.
8: Not as Rich as They Seem
Many people (45%) bringing in $100,000 or more per year still live paycheck to paycheck, and the number of Americans who make six figures but struggle to pay bills is growing. In 2021, it was only 38%.
9: Inflation Terrifies Them
Making $100,000 or more isn’t the inflation buffer you might think it is. Ninety-six percent of high earners are “very concerned” about inflation.
10: They Could Be Lower Middle Class
The majority of Americans (56%) say those bringing in more than $100,000 are wealthy. In truth, six-figure earners are upper-middle class in most areas. In expensive locales, $100,000 is a lower-middle-class wage.
11: They Think They Need More
Most Americans (82%) making over $100,000 say they need at least $200,000 yearly to consider themselves wealthy.
12: There’s a Good Chance They’re a Pilot or a Doctor
Airline pilots and doctors make up the majority of the Bureau of Labor and Statistics’ top earners list. The median salary for a pilot is $149,000. For a doctor, it varies by specialty but is often over $200,000.
13: Or a Blue Collar Worker
Several blue-collar jobs also bring home six figures, though their official salaries aren’t listed at $100,000 or above. Thanks to overtime and other benefits (like tips), police officers, firefighters, and even bartenders often bring home over $100k.
14: They Think They’re Stressed
Many earners making over $100,000 report feeling stressed, while those making closer to $75,000 report a good work-life balance. However, studies show people with lower incomes are more likely to experience severe stress, which can lead to health problems.
15: The Happiest Earners
Tennessee, Oklahoma, and Texas provide a low enough cost of living for six-figure earners to feel their wealth. Presumably, that makes them happier.
16: The Saddest Earners
Living in Hawaii, California, or New York comes with a high cost of living, and $100,000 won’t get you very far.
17: In NYC, They’re Downright Depressed
There’s a high chance that people earning $100k and living in New York are struggling. When you factor in taxes and the cost of living in the Big Easy, a $100,000 salary is only worth about $36,791.
18: You Can Call Them HENRY
HENRY stands for High Earning but Not Rich, which is how many six-figure earners feel.
19: They’re Trying To Work Less
The National Bureau of Economic Research found that men with college degrees making more than six figures per year are quietly cutting their hours. Still, they often work more hours than those who make less than six figures.
20: They Might Not Own Their Home
To purchase an average home in the US, you need to make $114,627 before taxes. That’s 50% more than you needed in 2019.
The Six-Figure Myth
For many, making six figures is synonymous with success. In reality, that’s often not the case. Rising costs in the US mean making $100,000 or more may not be enough.
It’s Not Bad Money Management
It’s tempting to think that poor money management skills are to blame when a six-figure earner says they’re living paycheck to paycheck. Yet, when you consider rising costs for everything from groceries to electricity and the cost of student loans, it becomes clear that $100,000 isn’t always enough.
Location Dependent
While there are many cities where a six-figure salary is still equivalent to wealth, those cities are less likely to offer the highest-paying jobs. High earners often live in coastal urban areas where the cost of living is sky-high.
Not What It Was Before
Just ten years ago, in 2014, a $100,000 salary could get you pretty far. Today, given inflation, you would need to make just under $132,000 to have the same buying power.
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Whether you dream of being in the top 1% or think you might already be there, one thing is certain: The income a household makes to be in the top 1% club varies by state. Here’s how much you need to make to have a higher income than 99% of Americans.
How Much Money It Takes To Be in the Top 1% in Each State
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