In the United States, the median annual income among the employed was about $43,000 in 2020. However, by definition, this just tells you where the midpoint is in a distribution. As you probably know, maybe a little too well over the past few years, personal income spans a wide range.
Here’s a more detailed view of how much Americans make per year.
Income by Age
Here’s the same incomes categorized by age.
PRE-TAX INCOME
$43,000 MEDIAN FOR ALL EMPLOYED
Relatively fewer people are still working at this age.
71 and older
$53,900 MEDIAN FOR AGE GROUP
Normal retirement age in the U.S. is 67. Some likely shift to part-time work while those with higher income seem to stick around longer.
The distribution of income looks similar from 41 to 60 years old. Although the 41 to 50 group skews slightly higher, maybe as people move into manager roles or finish professional education.
People working their way up.
Careers begin.
You mostly see part-time work in this younger age group.
PRE-TAX INCOME
SOURCE: 2020 AMERICAN COMMUNITY SURVEY
PRE-TAX INCOME
$43,000 MED. FOR ALL EMPLOYED
$53,900 MED. IN AGE GROUP
Relatively fewer people are still working at this age.
Normal retirement age in the U.S. is 67. Higher income seems to stick around longer.
The distributions of income look similar from 41 to 60 years old. Although the 41 to 50 group skews slightly higher, maybe as people move into manager roles or complete education.
People working their way up.
Careers begin.
You mostly see part-time work in this younger age group.
PRE-TAX INCOME
SOURCE: 2020 AMERICAN COMMUNITY SURVEY
I thought that during the working years, from 21 to 67-ish, there would be a more obvious shift in the distributions towards higher income. I was thinking more experience and/or education would equate to more pay. This is sort of the case if you’re looking at the $100,000 and $300,000 marks.
But overall, the spreads look similar across age groups. I’m not totally sure how to make of that. Once we get to middle age, our incomes don’t change that much? You stay in the same ballpark? I guess I’m not going to get that yacht.
Notes
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