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

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 2013. 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 2013. 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 25 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 or older 46 AMERICAN INCOMES

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 24 25 to 34 35 to 44 45 to 54 55 to 64 total 65 to 74 75 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 4,081 508 779 544 805 820 625 326 299 $5,000 to $9,999 4,859 367 742 549 751 1,010 1,439 590 849 $10,000 to $14,999 6,693 424 747 721 781 1,121 2,899 1,232 1,667 $15,000 to $19,999 7,321 488 956 881 887 1,215 2,894 1,169 1,725 $20,000 to $24,999 6,577 513 995 875 845 1,053 2,295 1,006 1,289 $25,000 to $29,999 6,302 453 986 842 908 996 2,117 958 1,159 $30,000 to $34,999 6,454 456 1,117 940 967 1,097 1,877 983 894 $35,000 to $39,999 5,827 383 1,037 891 1,032 884 1,600 977 622 $40,000 to $44,999 5,565 358 959 925 914 955 1,453 798 655 $45,000 to $49,999 5,286 351 1,005 907 874 940 1,208 646 562 $50,000 to $54,999 5,198 213 972 822 1,030 979 1,181 744 438 $55,000 to $59,999 4,349 240 763 802 849 743 952 636 316 $60,000 to $64,999 4,422 194 820 827 851 794 935 638 297 $65,000 to $69,999 3,818 183 713 689 786 645 802 537 265 $70,000 to $74,999 3,872 158 778 717 711 786 722 517 205 $75,000 to $79,999 3,702 103 726 731 770 716 656 472 183 $80,000 to $84,999 3,384 113 662 616 783 697 513 364 149 $85,000 to $89,999 2,622 77 519 505 630 487 404 310 94 $90,000 to $94,999 2,691 81 451 578 689 484 409 249 160 $95,000 to $99,999 2,288 97 405 493 499 483 310 227 83 $100,000 or more 27,641 562 3,876 6,191 7,447 6,130 3,436 2,532 905 $100,000 to $124,999 9,459 286 1,623 2,163 2,324 1,896 1,167 772 395 $125,000 to $149,999 5,806 105 865 1,301 1,445 1,282 809 611 197 $150,000 to $174,999 4,175 77 567 957 1,171 953 449 345 104 $175,000 to $199,999 2,288 23 306 521 680 508 250 191 59 $200,000 or more 5,913 71 515 1,249 1,827 1,490 761 613 149 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 $25,000 24.0 36.4 21.1 17.0 17.1 22.7 35.3 27.2 45.5 $25,000 to $49,999 23.9 31.7 25.5 21.4 19.7 21.2 28.7 27.4 30.4 $50,000 to $74,999 17.6 15.6 20.2 18.3 17.8 17.1 16.0 19.3 11.9 $75,000 to $99,999 11.9 7.4 13.8 13.9 14.2 12.4 8.0 10.2 5.2 $100,000 or more 22.5 8.9 19.4 29.4 31.3 26.6 12.0 15.9 7.1 Source: Bureau of the Census, Historical Income Data, Internet site http://www.census.gov/hhes/www/income/data/historical/index.html; calculations by New Strategist AMERICAN INCOMES 47

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

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 $34,600 2012 34,397 36,870 35,486 32,649 34,033 2011 34,164 37,029 35,250 33,263 33,362 2010 34,408 37,883 34,494 33,429 34,646 2009 34,953 38,461 34,818 33,718 36,046 2008 35,877 38,698 35,988 34,270 37,929 2007 37,295 39,233 38,562 35,824 38,883 2006 37,277 40,692 37,968 35,989 37,879 2005 37,318 38,927 38,169 35,778 37,689 2004 37,633 39,398 38,405 35,494 37,810 2003 37,910 39,785 38,363 34,974 38,537 2002 37,859 39,686 39,154 35,640 37,672 2001 38,290 40,310 39,844 35,980 37,740 2000 38,340 41,038 40,729 35,990 38,214 Percent change 2007 to 2013 5.5% 4.5% 7.6% 6.4% 11.0% 2000 to 2013 8.1 8.7 12.5 6.8 9.5 Source: Bureau of the Census, Historical Income Data, Internet site http://www.census.gov/hhes/www/income/data/historical/index.html; calculations by New Strategist AMERICAN INCOMES 147

Education Does Not Guarantee Earnings Growth Women with a bachelor s degree who worked full-time had lower earnings in 2013 than in 2007. 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 2013. Women with a professional degree (such as doctors or lawyers) were the only ones with higher median earnings in 2013 than in 2000. 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 2000 2013 222 AMERICAN INCOMES

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 $75,091 2012 40,558 20,352 21,698 30,848 35,567 37,863 54,466 50,902 61,812 95,846 79,034 2011 40,299 20,820 21,867 31,083 35,828 40,689 53,999 50,862 62,458 83,602 80,225 2010 40,789 19,449 22,261 31,884 35,758 40,309 55,521 50,692 63,350 82,118 82,725 2009 40,470 20,070 23,052 31,658 37,020 40,473 56,341 50,861 66,322 91,123 83,169 2008 39,703 20,160 22,076 30,707 35,298 39,771 55,620 50,878 62,223 77,137 80,088 2007 40,542 20,516 22,917 30,604 36,892 40,819 56,621 51,425 62,270 79,877 77,508 2006 40,547 20,950 23,257 30,891 36,918 40,621 57,272 52,462 60,584 88,086 81,474 2005 39,466 19,261 24,014 31,369 37,466 40,497 56,020 50,321 61,347 96,005 79,770 2004 39,473 20,984 23,637 32,120 38,011 41,300 56,651 51,430 63,289 92,616 84,337 2003 39,979 21,414 23,986 33,024 38,177 40,851 57,142 52,343 63,535 84,215 85,131 2002 40,153 21,378 25,000 32,607 38,069 40,950 55,996 52,899 63,305 73,830 85,091 2001 40,060 21,276 23,601 31,864 37,945 41,044 55,323 52,391 63,520 79,069 79,505 2000 39,460 21,132 23,248 31,885 36,934 41,530 55,989 52,020 63,560 81,813 77,579 Percent change 2007 to 2013 0.2% 3.3% 2.9% 0.6% 4.5% 7.6% 1.6% 1.3% 1.6% 6.9% 3.1% 2000 to 2013 2.9 6.1 4.3 3.4 4.6 9.2 0.5 2.5 3.6 4.4 3.2 Note: Earnings include wages and salaries only. Source: Bureau of the Census, 2014 Current Population Survey, Internet site http://www.census.gov/hhes/www/income/data/index.html; calculations by New Strategist AMERICAN INCOMES 223

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 2013. 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 2013. 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 35 35 to 44 45 to 54 55 to 64 65 to 74 75 or older 298 AMERICAN Incomes

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, 2010 13 and 2007 13) percentage point change NONFINANCIAL ASSETS 2013 2010 2007 2010 13 2007 13 Total households 91.0% 91.3% 92.0% 0.3 1.0 Household income percentile Below 20 percent 71.8 72.0 73.5 0.2 1.7 20 to 39.9 percent 90.8 90.7 91.2 0.1 0.4 40 to 59.9 percent 95.0 96.0 97.2 1.0 2.2 60 to 79.9 percent 98.2 98.6 98.5 0.4 0.3 80 to 89.9 percent 99.0 99.4 99.6 0.4 0.6 90 percent or higher 99.8 99.4 99.7 0.4 0.1 Age of householder Under age 35 84.9 82.8 88.2 2.1 3.3 Aged 35 to 44 92.8 92.7 91.3 0.1 1.5 Aged 45 to 54 91.8 94.7 95.0 2.9 3.2 Aged 55 to 64 92.9 94.4 95.6 1.5 2.7 Aged 65 to 74 95.9 92.6 94.5 3.3 1.4 Aged 75 or older 89.6 93.0 87.3 3.4 2.3 Education of householder No high school diploma 82.3 82.2 80.9 0.1 1.4 High school diploma 89.1 90.5 92.2 1.4 3.1 Some college 90.4 89.6 91.0 0.8 0.6 College degree 95.4 95.9 96.6 0.5 1.2 Race and Hispanic origin of householder Non-Hispanic White 94.9 94.9 94.6 0.0 0.3 Non-White or Hispanic 83.2 84.0 85.8 0.8 2.6 Region Northeast 84.9 85.6 84.2 0.7 0.7 Midwest 92.5 93.8 93.4 1.3 0.9 South 92.3 92.1 93.8 0.2 1.5 West 92.5 92.4 94.1 0.1 1.6 Housing status Owner 100.0 100.0 100.0 0.0 0.0 Renter or other 74.3 73.6 74.5 0.7 0.2 Source: Federal Reserve Board, Survey of Consumer Finances, Internet site http://www.federalreserve.gov/econresdata/scf/scfindex.html; calculations by New Strategist AMERICAN Incomes 299

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 18 18 to 64 65 or older AMERICAN INCOMES 389

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 14,659 457 4,838 5,415 4,094 Under age 5 4,435 159 1,545 1,680 1,070 Aged 5 to 17 10,223 298 3,293 3,735 3,024 Aged 18 to 64 26,429 1,258 6,410 6,654 12,133 Aged 18 to 24 5,819 309 1,585 1,358 2,595 Aged 25 to 34 6,694 379 1,601 1,918 2,857 Aged 35 to 44 4,871 231 1,170 1,548 1,926 Aged 45 to 54 4,533 169 1,021 1,076 2,242 Aged 55 to 59 2,476 74 611 427 1,346 Aged 60 to 64 2,036 96 422 327 1,168 Aged 65 or older 4,231 259 712 676 2,569 Aged 65 to 74 2,135 117 375 395 1,243 Aged 75 or older 2,095 142 337 280 1,326 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 18 100.0 3.1 33.0 36.9 27.9 Under age 5 100.0 3.6 34.8 37.9 24.1 Aged 5 to 17 100.0 2.9 32.2 36.5 29.6 Aged 18 to 64 100.0 4.8 24.3 25.2 45.9 Aged 18 to 24 100.0 5.3 27.2 23.3 44.6 Aged 25 to 34 100.0 5.7 23.9 28.7 42.7 Aged 35 to 44 100.0 4.7 24.0 31.8 39.5 Aged 45 to 54 100.0 3.7 22.5 23.7 49.5 Aged 55 to 59 100.0 3.0 24.7 17.2 54.4 Aged 60 to 64 100.0 4.7 20.7 16.1 57.4 Aged 65 or older 100.0 6.1 16.8 16.0 60.7 Aged 65 to 74 100.0 5.5 17.6 18.5 58.2 Aged 75 or older 100.0 6.8 16.1 13.4 63.3 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 http://www.census.gov/hhes/www/cpstables/032014/ pov/toc.htm; calculations by New Strategist 390 AMERICAN INCOMES