Key Takeaways
- Households ages 45–54 earn a median income of $91,880—the highest of any group—reflecting peak career years, greater experience, and often two full-time earners.
- Income levels vary widely across groups, with homeowners and college graduates earning substantially more than renters and those without a college degree.
- Income is just one piece of the puzzle—tracking your net worth offers a fuller picture of long-term financial health and overall stability.
Household income—and wealth—shift significantly with age. Data from the Federal Reserve’s Survey of Consumer Finances show that families typically see earnings and assets rise through midlife—reaching a peak at ages 45–54. Understanding how your household compares with others your age can provide perspective on your financial health—and how to improve it.
How Much the Average 45–54-Year-Old Earns—and How That Compares to Other Age Groups
The median family income for ages 45–54 was $91,880 in 2022, according to the Fed’s latest survey. That figure represents the highest median income of any age group, marking the peak of most Americans’ earning years.
By comparison, households ages 35–44 reported a median income of $86,470, while those 75 and older earned just $49,070, reflecting retirement income sources such as Social Security, pensions, and withdrawals from savings.
In the Fed’s survey, a “family” refers to a single economically dominant person or couple and their dependents, and “income” includes all sources—from wages and business income to investments, retirement withdrawals, and government benefits.
At the mid-40s to mid-50s stage of life, many households are at their peak earning years as workers reach higher-paying positions, often after decades of experience and career advancement. (Medians are used instead of averages to reduce the influence of unusually high or low incomes.)
Why This Matters to You
Household income and net worth vary widely by age, education, and homeownership. Homeowners and college graduates tend to earn more, but careful spending and saving habits can have a bigger impact on financial security than income alone.
What the Fed’s Data Reveal About America’s Income Gaps
Although the Fed’s survey doesn’t break out income data by education level or homeownership for individual age groups, the results across U.S. households overall reveal clear patterns that likely hold for 45–54-year-olds as well. Across all households, the median U.S. income was $70,260.
Education Creates the Widest Income Gaps
The survey highlights especially wide income gaps tied to education. All families without a high school diploma have a median income of $32,430, compared with $117,820 for those with a college degree. In the middle are high school graduates earning a median of $52,960, and those with some college earning a median of $60,530.
While a college degree “helps get your foot in the door and signals both subject knowledge and a capacity for learning, industry choice and skillsets are becoming increasingly important,” said Tyler Gilley, CFP, a wealth advisor at Halbert Hargrove in Long Beach, Calif, He noted that specialized abilities often matter more than a broad degree in fields reshaped by artificial intelligence (AI), such as data science.
Homeownership Makes a Big Difference for Wealth
The survey also reveals large divides related to housing status. Households of all ages that own their home earn more than twice as much as renters—$94,040 versus $42,160. Whether you rent or own, monthly payments are a given. However, how those payments affect your long-term finances can differ significantly.
“Homeownership—especially with a fixed-rate mortgage—offers predictable payments, which is a major advantage for budgeting,” Gilley said. “Rent, on the other hand, is subject to inflation and can rise unpredictably, potentially outpacing income growth and straining financial stability.”
Paying down your mortgage principal builds equity and serves as a form of long-term savings, but being disciplined and maintaining liquid assets and an emergency fund are critical, Gilley said. He also noted that renting may be a better choice in some circumstances, with no one-size-fits-all solution for everyone.
Why Net Worth Tells a Clearer Story Than Income
Those income gaps only tell part of the story. What really determines financial stability is how much households keep.
Income shows how money flows in, but net worth, the value of what a household owns minus what it owes, shows how money sticks. According to the Fed’s survey, the median household net worth for those ages 45-54 was $246,700.
The Fed defines net worth as the total value of financial and non-financial assets—homes, real estate, vehicles, businesses, retirement accounts, stocks, bonds, and more—minus liabilities such as mortgages, credit card balances, and other loans.
“Two households may earn similar incomes, but their financial security can differ dramatically based on how they manage spending,” Gilley said.
If you liken income to water flowing into a bucket, he said, consider one household with a steady stream that fills a bucket with holes in it due to unchecked spending and expenses. Compare that to another household with a smaller stream but fewer holes thanks to budgeting and mindful spending. The latter bucket retains more water, leading to greater financial stability and savings.
“The key isn’t just how much you earn, but how much you keep,” he said.
