Household Income Peaks in the 45-to-54 Age Group

Transcription

1 Household Income Peaks in the 45-to-54 Age Group More than 40 percent of Asian households headed by 45-to-54-year-olds have an income of $100,000 or more. Median household income stood at $51,939 in For households headed by people 45 to 54, however, median income was a higher $67,141. Household incomes are highest in middle age because people in their thirties, forties, and fifties are usually at the height of their career. Nearly one-third of households headed by people 45 to 54 had an income of $100,000 or more in By race and Hispanic origin, median income peaks among Asian households headed by 45-to-54- year-olds at $85,612. The median household income of their non-hispanic White counterparts is a smaller $77,260. Hispanic household income peaks at just $47,199. Among Black households, median income peaks at $42,178. The Black household income peak is relatively low because married couples the most affluent household type head few Black households. The Hispanic household income peak is relatively low because many Hispanics have little education. The incomes of households headed by people 55 to 64 should grow in the years ahead as twoincome baby-boom couples fill the age group and many postpone retirement. Incomes are lowest for the oldest householders (median income of households by age of householder, 2013) $75,000 $50,000 $52,702 $64,973 $67,141 $57,538 $44,426 $25,000 $34,311 $27,322 $0 under age to to to to to or older 46 AMERICAN INCOMES

2 Household Income, 2013 Table 1.23 Households by Income and Age of Householder, 2013: Total Households (number and percent distribution of households by household income and age of householder, 2013; households in thousands as of 2014) 65 or older total 15 to to to to to 64 total 65 to or older Total households 122,952 6,323 20,008 21,046 23,809 23,036 28,729 15,911 12,818 Under $5,000 4, $5,000 to $9,999 4, ,010 1, $10,000 to $14,999 6, ,121 2,899 1,232 1,667 $15,000 to $19,999 7, ,215 2,894 1,169 1,725 $20,000 to $24,999 6, ,053 2,295 1,006 1,289 $25,000 to $29,999 6, , ,159 $30,000 to $34,999 6, , ,097 1, $35,000 to $39,999 5, , , , $40,000 to $44,999 5, , $45,000 to $49,999 5, , , $50,000 to $54,999 5, , , $55,000 to $59,999 4, $60,000 to $64,999 4, $65,000 to $69,999 3, $70,000 to $74,999 3, $75,000 to $79,999 3, $80,000 to $84,999 3, $85,000 to $89,999 2, $90,000 to $94,999 2, $95,000 to $99,999 2, $100,000 or more 27, ,876 6,191 7,447 6,130 3,436 2, $100,000 to $124,999 9, ,623 2,163 2,324 1,896 1, $125,000 to $149,999 5, ,301 1,445 1, $150,000 to $174,999 4, , $175,000 to $199,999 2, $200,000 or more 5, ,249 1,827 1, Median income $51,939 $34,311 $52,702 $64,973 $67,141 $57,538 $35,611 $44,426 $27,322 Percent distribution Total households 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Under $25, $25,000 to $49, $50,000 to $74, $75,000 to $99, $100,000 or more Source: Bureau of the Census, Historical Income Data, Internet site calculations by New Strategist AMERICAN INCOMES 47

3 In Every Region, Men Have Lost Ground since 2000 In the Northeast and Midwest, the decline began before the Great Recession. In every region, men saw their incomes decline between 2000 and 2013, after adjusting for inflation. The greatest loss occurred among men in the Midwest, a decline of 13 percent. The smallest decline (7 percent) was in the South. Men in the West and Northeast saw their median income fall by about 9 percent during those years. Between 2007 and 2013, the pattern shifted somewhat. The largest decline in median income occurred among men in the West, whose median fell 11 percent after adjusting for inflation. Men in the Northeast experienced the smallest decline, just 4.5 percent. Men in the South have the lowest median income ($33,542), and men in the Northeast have the highest ($37,466). Between 2007 and 2013, men s median income fell the most in the West (percent change in median income of men 15 or older by region, 2007 to 2013; in 2013 dollars) 0% 3% 6% 9% 4.5% 7.6% 6.4% 12% 11.0% Northeast Midwest South West 146 AMERICAN INCOMES

4 Men s Income Trends Table 2.7 Median Income of Men by Region, 2000 to 2013 (median income of men 15 or older with income by region, 2000 to 2013; percent change for selected years; in 2013 dollars) total men Northeast Midwest South West 2013 $35,228 $37,466 $35,626 $33,542 $34, ,397 36,870 35,486 32,649 34, ,164 37,029 35,250 33,263 33, ,408 37,883 34,494 33,429 34, ,953 38,461 34,818 33,718 36, ,877 38,698 35,988 34,270 37, ,295 39,233 38,562 35,824 38, ,277 40,692 37,968 35,989 37, ,318 38,927 38,169 35,778 37, ,633 39,398 38,405 35,494 37, ,910 39,785 38,363 34,974 38, ,859 39,686 39,154 35,640 37, ,290 40,310 39,844 35,980 37, ,340 41,038 40,729 35,990 38,214 Percent change 2007 to % 4.5% 7.6% 6.4% 11.0% 2000 to Source: Bureau of the Census, Historical Income Data, Internet site calculations by New Strategist AMERICAN INCOMES 147

5 Education Does Not Guarantee Earnings Growth Women with a bachelor s degree who worked full-time had lower earnings in 2013 than in Among women who work full-time, the median earnings of those with a bachelor s degree fell 1.3 percent between 2007 and 2013, after adjusting for inflation. Among women with less education, the earnings decline ranged from 3 to 8 percent during those years. The only exception to this decline occurred among women with no more than a high school diploma, who saw their median earnings inch up by 0.6 percent. The decline in the earnings of educated women who work full-time began well before the Great Recession. In the 2000-to-2007 time period, women with a bachelor s degree who worked full-time saw their median earnings fall from $52,020 to $51,425, after adjusting for inflation. The Great Recession added to the loss, with median earnings falling to $50,745 in Women with a professional degree (such as doctors or lawyers) were the only ones with higher median earnings in 2013 than in Despite the decline in earnings, the premium paid to college graduates has barely changed. Among women, the premium paid to college graduates held steady (median earnings of women 25 or older who work full-time, year-round, by selected educational attainment, 2000 and 2013; in 2013 dollars) $50,000 $52,020 $50,745 $40,000 $30,000 $31,885 $30,801 $20,000 $10,000 $0 high school graduate only bachelor s degree only AMERICAN INCOMES

6 Women s Income Trends Table 3.10 Median Earnings of Women Who Work Full-Time by Education, 2000 to 2013 (median earnings of women 25 or older who work full-time, year-round, by educational attainment, 2000 to 2013; percent change for selected years; in 2013 dollars) bachelor s degree or more 9th to high some total less than 12th grade, school college, associate s bachelor s master s professional doctoral women 9th grade no diploma graduate no degree degree total degree degree degree degree 2013 $40,613 $19,840 $22,248 $30,801 $35,242 $37,704 $55,724 $50,745 $61,281 $85,396 $75, ,558 20,352 21,698 30,848 35,567 37,863 54,466 50,902 61,812 95,846 79, ,299 20,820 21,867 31,083 35,828 40,689 53,999 50,862 62,458 83,602 80, ,789 19,449 22,261 31,884 35,758 40,309 55,521 50,692 63,350 82,118 82, ,470 20,070 23,052 31,658 37,020 40,473 56,341 50,861 66,322 91,123 83, ,703 20,160 22,076 30,707 35,298 39,771 55,620 50,878 62,223 77,137 80, ,542 20,516 22,917 30,604 36,892 40,819 56,621 51,425 62,270 79,877 77, ,547 20,950 23,257 30,891 36,918 40,621 57,272 52,462 60,584 88,086 81, ,466 19,261 24,014 31,369 37,466 40,497 56,020 50,321 61,347 96,005 79, ,473 20,984 23,637 32,120 38,011 41,300 56,651 51,430 63,289 92,616 84, ,979 21,414 23,986 33,024 38,177 40,851 57,142 52,343 63,535 84,215 85, ,153 21,378 25,000 32,607 38,069 40,950 55,996 52,899 63,305 73,830 85, ,060 21,276 23,601 31,864 37,945 41,044 55,323 52,391 63,520 79,069 79, ,460 21,132 23,248 31,885 36,934 41,530 55,989 52,020 63,560 81,813 77,579 Percent change 2007 to % 3.3% 2.9% 0.6% 4.5% 7.6% 1.6% 1.3% 1.6% 6.9% 3.1% 2000 to Note: Earnings include wages and salaries only. Source: Bureau of the Census, 2014 Current Population Survey, Internet site calculations by New Strategist AMERICAN INCOMES 223

7 Nonfinancial Assets Are the Foundation of Household Wealth The median value of the nonfinancial assets owned by the average household continued to decline between 2010 and The median value of the nonfinancial assets owned by the average American household stood at just $148,400 in 2013, well below the $199,200 of 2007, after adjusting for inflation. Despite the decline, the median value of the nonfinancial assets owned by the average household far surpasses the median value of its financial assets, which was just $21,200 in Eighty-six percent of households own a vehicle, the most commonly held nonfinancial asset. The value of the vehicles owned by the average household fell 9 percent between 2007 and 2013, to $15,800 after adjusting for inflation. Behind the decline was vehicle depreciation during and after the Great Recession as spending on new vehicles plunged. The second most commonly owned nonfinancial asset is a home, owned by 65 percent. Homes are by far the most valuable asset owned by Americans, and they account for the largest share of net worth. In 2013, the median value of the average owned home was $170,000, 24 percent lower than the $224,600 median of owned homes in 2007 (in 2013 dollars). Housing has a bigger impact on household net worth than any other asset. Median housing value peaks in the 55-to-64 age group (median value of the primary residence among homeowners, by age of householder, 2013) $200,000 $170,000 $180,000 $185,000 $175,000 $150,000 $140,000 $145,000 $100,000 $50,000 $0 under age to to to to or older 298 AMERICAN Incomes

8 Wealth Table 4.17 Household Ownership of Nonfinancial Assets, 2007 to 2013 (percentage of households owning any nonfinancial asset and median value for owners, by selected characteristics, 2007 to 2013; percentage point change, and ) percentage point change NONFINANCIAL ASSETS Total households 91.0% 91.3% 92.0% Household income percentile Below 20 percent to 39.9 percent to 59.9 percent to 79.9 percent to 89.9 percent percent or higher Age of householder Under age Aged 35 to Aged 45 to Aged 55 to Aged 65 to Aged 75 or older Education of householder No high school diploma High school diploma Some college College degree Race and Hispanic origin of householder Non-Hispanic White Non-White or Hispanic Region Northeast Midwest South West Housing status Owner Renter or other Source: Federal Reserve Board, Survey of Consumer Finances, Internet site calculations by New Strategist AMERICAN Incomes 299

9 Poverty, 2013 Non-Hispanic Whites Dominate the Elderly Poor Minorities account for the majority of poor under age 55. Among the nation s 45 million poor in 2013, only 41 percent were non-hispanic White. Twenty-eight percent of the poor were Hispanic, 26 percent were Black, and 4 percent were Asian. The non-hispanic White share of the poor rises fairly steadily with age. Among poor children, 28 percent are non-hispanic White, 33 percent are Black, and the largest share 37 percent is Hispanic. The non-hispanic White share of the poor becomes the majority in the 55-to-59 age group. Among poor people 75 or older, fully 63 percent are non-hispanic White. As the Hispanic population expands, it represents a growing share of the poor. Non-Hispanic Whites account for most of the elderly poor (percent of people below poverty level who are non-hispanic White, by age, 2013) 60% 61% 45% 46% 30% 28% 15% 0% under age to or older AMERICAN INCOMES 389

10 Table 5.45 People below Poverty Level by Age, Race, and Hispanic Origin, 2013 (number of people below poverty level and percent distribution of poor by age, race, and Hispanic origin, 2013; numbers in thousands) non-hispanic NUMBER IN POVERTY total Asian Black Hispanic White Total people in poverty 45,318 1,974 11,959 12,744 18,796 Under age 18 14, ,838 5,415 4,094 Under age 5 4, ,545 1,680 1,070 Aged 5 to 17 10, ,293 3,735 3,024 Aged 18 to 64 26,429 1,258 6,410 6,654 12,133 Aged 18 to 24 5, ,585 1,358 2,595 Aged 25 to 34 6, ,601 1,918 2,857 Aged 35 to 44 4, ,170 1,548 1,926 Aged 45 to 54 4, ,021 1,076 2,242 Aged 55 to 59 2, ,346 Aged 60 to 64 2, ,168 Aged 65 or older 4, ,569 Aged 65 to 74 2, ,243 Aged 75 or older 2, ,326 PERCENT DISTRIBUTION OF POOR BY RACE AND HISPANIC ORIGIN Total people in poverty 100.0% 4.4% 26.4% 28.1% 41.5% Under age Under age Aged 5 to Aged 18 to Aged 18 to Aged 25 to Aged 35 to Aged 45 to Aged 55 to Aged 60 to Aged 65 or older Aged 65 to Aged 75 or older Note: Asians and Blacks are those who identify themselves as being of the race alone and those who identify themselves as being of the race in combination with other races. Non-Hispanic Whites are those who identify themselves as being White alone and not Hispanic. Numbers do not add to total because not all races are shown and Hispanics may be of any race. Source: Bureau of the Census, 2014 Current Population Survey, Internet site pov/toc.htm; calculations by New Strategist 390 AMERICAN INCOMES