What does happiness look like? It includes being able to pay bills on time (67% of respondents), living debt-free (65%), affording everyday luxury items without worry (54%), spending on experiences with loved ones (53%) and owning a home (45%)
But what’s drastically different among Americans is the price they put on happiness. Baby boomers, for example, say they would require an annual salary of just $124,000 to feel happy. Millennials, on the other hand, say they’d need a whopping $526,000 a year to spark joy in their lives.
Here’s why the numbers may vary, and the one thing most Americans agree is key to financial security.
Why the drastic difference in price?
Gen X ($130,000) and Gen Z’s ($128,000) yearly price on happiness isn’t far off from baby boomers — so why do millennials feel they need so much more money?
One major factor could be the economic crises they’ve faced during their lifetimes, suggests Empower. The Great Recession of 2008 came at a time when many millennials were starting their careers, followed by market volatility amid the COVID-19 pandemic along with high inflation that continues to persist.
Both millennial and Gen Z survey respondents say they stress most about high housing costs (67%, 46%), rising rent prices (62%, 38%), growing debt (57%, 48%), job layoffs (53%, 26%) and student loan payments (48%, 20%) — the last of which resumed this fall.
Millennials are also at a stage in their lives where their parents would have been homeowners, but are currently contending with high mortgage rates and home prices.
Some could be managing other costs as well, such as child care, which has become increasingly expensive and inaccessible, especially with the end of pandemic-era programs.
Meanwhile, many baby boomers have seen their wealth grow over the years, thanks to rising equity in their homes, and some are now settling into retirement with their kids out of the nest. They likely don’t have as many pressing financial commitments aside from putting together a tidy cash cushion to spend their golden years in comfort.
One thing all generations agree on
While different age groups can’t seem to agree on what’s the magic income to achieve happiness, nearly three-quarters of respondents to the Empower survey agree one thing is key to financial wellbeing.
