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NextGen Magazine

 
 

Study: Average Incomes Tend to Stabilize Around $45K Once You Hit 35

By:
Chris Gaetano
Published Date:
Dec 7, 2018
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Census Bureau data indicates that average incomes tend to range between $45,000 and $48,000 once people hit their mid-30s, with fewer people breaking the $50,000 mark as the years go on, according to MarketWatch. Median income between the age of 20 and 35 goes from $12,000 to $44,000, a more than three-times increase, but after that point, gains begin to slow. Median income at the age of 40 is just a thousand dollars more, $45,000; between age 45 and 50, it's $46,000; at 55, earnings hit $47,000 before dropping back to $46,000 around age 60. Median income is highest at age 65, when it gets to $48,000 a year. The data indicates that most income growth seems to happen between 20 and 35, and then starts leveling off. 

The data makes the point in another way by showing that the percent of people making more than $50,000, much like annual income, grows rapidly until about 35, at which point it stays roughly constant at the 40 to 50 percent range. Only one percent of people at age 18 make more than $50,000. Meanwhile, 42 percent of people at age 35 make more than that. After that point, the percentages move more slowly each year, growing to 43 percent by age 37, and to 47 percent by age 65. The number of people making over $50,000 peaks at age 66 and 69, however, with 52 percent of each cohort breaching that income threshold.