Average Income By Age -- Not What I Expected

Have you ever wondered how your income compares to the average or median income? Whether you're wondering to gauge if you're ahead or behind the benchmark, or if it's simply out of curiosity, we'll take a look at the numbers by each age group. How your earnings stack up against others often depends on factors like where you live, and of course what you do for a living. Understanding the average annual income in the United States for your age group can provide valuable insight into whether you're on par, ahead, or falling behind your peers. Looking at what older generations earn can also help you set goals and plan for the future. It can help you assess your financial progress and make necessary adjustments. If you happen to find yourself below the average salary, then it's a good idea to dig deeper and see if it's your overall career that falls below the average, or if there's an opportunity to get paid more for what you're doing right now. The Bureau of Labor Statistics, or the BLS, keeps up-to-date info on this, breaking it down into seven age groups. Instead of mean, which is the most common form of average, they use median, since extreme high or low earners can throw the numbers off. Based on 2024 earnings data, the typical full-time worker in the U.S. out of about 120 million made $1,192 per week, or about $62,000 per year before taxes, whether they were paid hourly or on a salary. Now, let's take a look at the typical earnings for each age group. The group that sees peak earnings is actually pretty surprising. According to BLS data, the median income for 16- to 19-year-olds is around $679 per week, or $35,000 per year. Teenage workers generally earn the least out of all age groups, which isn't surprising, since most of them are just starting out in the workforce and work entry-level jobs. Many take on part-time, seasonal, or temporary jobs, often juggling work with school and other commitments. These roles, such as working in retail, fast food, or babysitting, typically offer lower wages because they require minimal experience or formal education. Even though their earnings might be low, this stage is about more than just money. It's a chance to build key workplace skills, like punctuality, teamwork, resume building, and managing a paycheck. They might not be making much money yet, but the experience they gain early on can open the door to better-paying opportunities as they move into their 20s and beyond. Plus, the life lessons you get from some entry-level jobs are really valuable. They help you get ready for future success by teaching you how to handle customers and colleagues, even the difficult ones. The median salary for 20-24 year olds is about $784 per week, or roughly $41,000 per year. This stage is a big transition for many, as they're just starting out in the workforce and still figuring out their professional path. Some workers are just starting to put their college degrees to use, while others are wrapping up some kind of training. Meanwhile, some are taking on random jobs, trying to figure out their next move. Overall, earnings tend to rise throughout one's 20s as people gain experience, build new skills, and for some, graduate from college and stabilize their career, though pay is often on the lower side at first. This age group is packed with young professionals, often who are just trying to get their foot in the door, so their jobs don't pay as much as mid-career roles. While their earnings are on the lower end compared to older groups, this phase is key for career growth. Many use this time to explore different industries to find out what suits them, get hands-on experience, and build connections that can open doors to better-paying jobs down the road. It's also when a lot of people start learning to manage their money, setting budgets, saving, and planning for big goals, like buying a home or saving for retirement. Though salaries might start out low, they typically rise throughout the late 20s and early 30s, as workers gain expertise and move up in their fields. By the time Americans hit their late 20s and early 30s, earnings tend to see a noticeable boost. The median salary for people aged 25 to 34 is $1,136 per week, or about $59,000 per year, which is a solid jump from the previous age group. This increase makes sense. By this point, many have gained several years of work experience, moved into higher-paying roles, or even switched jobs for better opportunities. Some in this group have earned professional degrees or certifications, giving their earnings potential a big boost, while others have started their own businesses and may have found some success along the way. This stage is often when people start feeling more financially stable, allowing them to focus on bigger life goals like buying a home, paying off student loans, or saving more aggressively for retirement. It's also a time when salaries can vary a lot depending on career choices. Those in fields like technology, finance, or healthcare might see much higher earnings than those in jobs that don't require specialized skills. Regardless of the profession, this period is typically when people begin solidifying their careers, setting the stage for even bigger financial growth in their 30s and beyond. The median salary for 35-44 year olds is about $1,356 per week, or roughly $71,000 per year. By this point, many people are pretty settled in their careers, which reflects in their pay. This is a big earnings stage for many, as they're often moving into senior roles, taking on leadership positions, or using years of experience to land better pay. It's also when a lot of people start making their highest earnings, but it's also a time when financial responsibilities are at their peak. They might have a big mortgage, car payments, and all the costs that come with raising a family. It's a time when you're making more, but also juggling more expenses. By the time people hit their 40s, earnings usually start to level off, with the median salary for 45-54 year olds at $1,336 per week, or $69,000 per year. Interestingly, this is a slight drop compared to the previous age group. This shift could be due to a few reasons, like fewer opportunities for promotions to higher paying roles, or people choosing less stressful jobs as they get closer to their 50s. Income needs might also go down, since they've likely built up equity in their homes, saved for big purchases, and have more room in their budgets. At this point, many also start to focus more on work-life balance, or putting money aside for retirement, which can affect how their income looks. For Americans aged 55-64, the median salary drops to $1,268 per week, or about $66,000 per year. This is noticeably lower than the earnings from the previous age group, and there's also a decline in the number of workers in this bracket. Many workers in their 60s begin to cut back on their workload by staying in less stressful positions that pay less, especially once they turn 62 and become eligible for Social Security benefits. Sometimes, it's because their benefits can be reduced if they earn too much during this time. This transition into retirement or semi-retirement can naturally lead to a drop in earnings for this age group. Working Americans aged 65 and older earn a median salary of $1,159 per week, or about $60,000 per year. This figure represents full-time workers, but it's also important to note that many in this age group have retired or reduced their working hours to rely on Social Security or savings. While the number of workers in this bracket is smaller, there are still over 11 million people over 65 in the workforce. Some remain employed either because they need the money or personal choice, enjoying the structure and engagement work offers even as they get older. If you want to boost your annual income, there are a few simple ways to go about it. First, if you've been performing well at your job, don't be afraid to ask for a raise backed by research. You can also look for a new job if your current employer isn't willing to pay what you're worth. Or look into higher-paying opportunities by checking out new roles or industries, upgrading your skills through extra courses or certifications can make you more attractive to employers. Another option is to start a side hustle, like freelancing or running a small business. Finally, think about investing in passive income sources like rental properties or dividend stocks to help grow your earnings steadily over time. There are plenty of options, and even if some of them aren't a good fit, don't rule them all out. Sometimes it only takes one opportunity to make a huge difference. At the end of the day, your annual income is just one factor in the bigger picture of your finances. What really matters is how effectively you manage that income. It's about how much you can invest, how much passive income you're generating, and the steady growth of your net worth. Building wealth over time and working towards financial independence should be your true focus. After all, it's not just how much you earn, but how much you can make your money work for you in the long run that determines your financial success.