Americans Seek 25% Higher Income for Security Amid Inflation

A significant shift in financial sentiment has been observed among Americans, with a growing number expressing the need for higher incomes to achieve a sense of financial security. According to recent findings, approximately 25% of Americans now believe they require an annual income of at least $150,000 to feel financially secure. This marked increase in the perceived threshold for financial security is largely attributed to the impact of inflation, which has eroded purchasing power and heightened economic uncertainty.

The rising cost of living, driven by inflation, has made it increasingly difficult for many Americans to maintain their standard of living. Basic necessities such as groceries, housing, and healthcare have become more expensive, forcing individuals to reassess their financial needs. The inflationary pressures have led to a situation where even those with relatively high incomes feel the pinch, as the value of their earnings diminishes in the face of rising prices.

Experts suggest that the phenomenon is not solely based on financial considerations but also reflects a broader sense of economic insecurity. The volatility in the job market, coupled with the lingering effects of the pandemic, has contributed to a heightened sense of uncertainty. Many Americans are concerned about job stability and the potential for future economic downturns, which further fuels the desire for higher incomes as a means of safeguarding against financial hardship.

According to a survey, about 77% of Americans said they don’t feel financially stable, up several percentage points since 2023. The $150,000 salary that survey respondents are seeking in 2025, is equivalent to around $120,000 in 2020 dollars. While salaries have risen since before the pandemic, so have the prices of some mainstays of American life such as home and car prices, which are both up double digits since 2019.

“We experienced some of the highest inflation levels since the 1970s, and this shock has led to some of the perceptions of a higher cost of living, whether exaggerated or not,” said a business school professor. Still, salary perceptions can be based on more than just the economy. A report found 42% of Americans making six figures or more claim to be living “paycheck to paycheck.”

“When it comes to income, I think it’s human nature to always want at least a little more than what we have,” said a senior economist. “Lifestyle creep means that many of us end up spending more on housing, clothing, entertainment, and everything else as our income rises.”

Despite Americans’ perception that they need higher salaries, the economy and markets seem to be in good shape. The U.S. added 139,000 jobs in May, surpassing expectations while the unemployment rate held steady at 4.2%. Meanwhile, stocks are back near record highs, despite recent geopolitical uncertainty.

However, people are still feeling the pressure of rising prices, and thanks to inflation, even the $150,000 wage survey respondents seek no longer affords the same luxuries as before. “As today’s pricey economy makes everything from housing and education to health care and child care more expensive, many Americans are finding that they struggle to get by on even a six-figure income. In many high-cost cities and states, $150,000 is considered a middle-income salary,” said an economic analyst.