And while most acknowledge that earned income is the engine behind that growth, nearly half (43%) noted employer equity as a contributing factor.
The number of US households with someone under the age of 40 taking home $100,000 or more, has risen by 1 million in the last four years, according to a new survey.
The survey Movin’ on Up: A Profile of the Emerging Young Affluent, shows that last year there were 3.5 million US households at this income level or with a net worth of half a million dollars, an increase of 40% from 1997.
Despite their wealth, less than a quarter (21%) of the group have a financial plan, yet over 50% think they could use one.
Spectrem, a consultant specializing in the affluent and retirement markets, which conducted the survey, found that 72% of these young affluent households had two earners, up from 60% in 1997.
Among the young affluent surveyed:
- over 80% said that earned income is the primary source of their wealth.
- while 55% cited investment returns as a source of wealth
- 83% had one or more dependent children
Not surprisingly, their two primary savings goals were:
- assuring a comfortable retirement
- paying for their children’s education