The concept of financial success varies widely depending on whom you ask—and, perhaps unsurprisingly, on their generation.

According to new research from financial services company Empower, the average American believes financial success means earning $270,000 annually and having a net worth of $5.3 million. The study, based on responses from over 2,000 U.S. adults, reveals generational differences in what it takes to “make it.”

Generational Income Benchmarks

When broken down by age groups, the perceptions of success vary dramatically:

• Baby Boomers (born 1946–1964): $99,874 per year
• Generation X (born 1965–1979): $212,321 per year
• Millennials (born 1980–1994): $180,165 per year
• Generation Z (born 1995–2012): $587,797 per year

While these numbers seem vastly different, inflation could help explain the gap.

Inflation: Bridging the Gap Between Boomers and Gen Z

What seems like a modest benchmark for Baby Boomers might actually align more closely with Gen Z’s lofty expectations. Adjusted for inflation, $99,874 in 1974—when Boomers were 28 to 48 years old—would be roughly $677,000 today, according to the Consumer Price Index (CPI). This aligns more closely with Gen Z’s perspective of financial success and money at large.

Pathways to Achieving Financial Success

Despite generational differences, a majority of Americans (58%) are optimistic they’ll reach financial success within their lifetime. Younger generations, including Gen Z (71%) and Millennials (70%), were the most confident, compared to 53% of Gen Xers and 45% of Boomers.

Survey respondents highlighted several strategies for achieving success:

• A well-paying job: 51%
• Saving and compounding interest: 46%
• Smart investments: 46%
• Financial education: 36%
• Spending within one’s means: 52%

Regardless of generation, one principle stood out: living below your means is key to achieving financial stability and long-term success.

While perceptions of financial success may vary, the common thread is clear—balancing income, savings, and smart financial habits is a universal goal.

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(Image credit: News Anyway)