The Secret to Financial Success: Insights from Empower’s Study
NATION — Is there a secret to financial success? Most Americans (52%) say ”yes”—and the average salary considered successful is $270,000 per year, with a net worth of $5.3 million, according to new research from Empower, a financial services leader in investing, planning, and advice.
Happiness Over Wealth: Redefining Success
But it’s not just money—it’s what money can buy. Only 27% rank wealth as the highest measure of financial success. Instead, most Americans say happiness (59%) is the most important benchmark—being able to spend money on the things and experiences that bring the most joy, doing what you love, followed by the luxury of free time (35%) to pursue personal passions.
The Factor of Four: Keys to Success
People say success is about the ”Factor of Four”: hard work (84%); talent (65%); who you know (55%)—known as The Network Effect; and luck and circumstance (51%). The secret is to be a visionary (36%) and then outwork everyone (32%), a belief held most firmly by those with incomes over $100k, rising to 40%. Over one third of people (35%) say ”pay yourself first”—putting money away and saving for retirement. For one in five younger generations (Gen Zers and Millennials 19%), a secret to success is ”fake it ‘til you make it.”
Barriers to Success: Economic and Personal Hurdles
More than one third say the economy (35%) and income instability—irregular or insufficient income streams (30%)—are culprits, along with a lack of knowledge about managing finances (20%). Nearly a third say the biggest obstacle to success is not setting clear financial goals (28%). Over one in four (26%) say procrastination or delaying financial planning or decision-making gets in the way. People see a lack of savings (35%), overspending and not budgeting effectively (37%), and debt (36%) as barriers to success.
Tangible Signs of Success
For most people (63%), financial success is found in tangible wins: being able to pay bills on time, owning a home (52%), and affording experiences like travel and entertainment (47%). For 40%, it’s about retiring at a goal age—and while they are working, enjoying the job (42%).
Money Moves That Propel Success
Having a financial plan (45%), building up retirement plan savings like 401(k) investments (30%), and investing in stocks (27%) are top money moves people say propel greater success. One in three people (30%) say getting good financial advice is worth its weight in gold.
Generational Perspectives on Success
Despite hurdles, most Americans (58%) believe that they will achieve financial success in their lifetime, with the younger generations most optimistic (Gen Z 71%, Millennials 70%, Gen X 53%, and Baby Boomers 45%).
For More Information
Visit The Currency™ to read Empower’s full research report, ”Secret to Success.”
ABOUT THE STUDY
The Empower ”Secret to Success” study is based on online survey responses from 2,203 Americans ages 18+ fielded by Morning Consult from September 13-14, 2024. The survey is weighted to be nationally representative of U.S. adults (aged 18+).
— BPT
