Almost half of Americans believe they would need a household income of more than $200,000 a year to feel financially secure, according to new research from Cashback Loans.
The survey of 3,000 US adults found that the median response fell within the $150,001–$200,000 annual household income range, at least 115% higher than the US national average salary of $69,847.
How much do Americans think they need?
The research shows wide differences in how Americans define the income needed for financial security.
More than a third (35%) believe an annual household income of $100,000 or less would be sufficient. Meanwhile, almost half said they would need more than $200,000, including around 1 in 4 who believe they would need more than $500,000.
| Annual household income respondents said they need | Share of Americans |
|---|---|
| $20,000–$100,000 | 35% |
| $100,001–$200,000 | 16% |
| $200,001–$500,000 | 23% |
| $500,001–$1 million | 27% |
Financial security varies across the US
Perceptions of the income needed to feel financially secure vary significantly by state.
Half of respondents in Nebraska believe they need more than $500,000 a year, followed by New Mexico at 44%, and Connecticut and Delaware at 43%.
At the other end of the scale, 67% of North Dakotans believe $100,000 or less would be enough to feel financially secure. The figure is 60% among respondents in both Alaska and Arkansas.
Among larger states, 31% of Texans and Floridians believe they need more than $500,000 annually, compared with 22% of New Yorkers and 20% of Californians.
Financial security income expectations by state
| State | Believe they need up to $100,000 | State | Believe they need $500,000 or more |
|---|---|---|---|
| North Dakota | 67% | Nebraska | 50% |
| Alaska | 60% | New Mexico | 44% |
| Arkansas | 60% | Connecticut | 43% |
| Louisiana | 50% | Delaware | 43% |
| Arizona | 46% | Montana | 42% |
| Iowa | 45% | Kentucky | 42% |
| Idaho | 45% | Hawaii | 42% |
| Utah | 44% | South Carolina | 35% |
| Rhode Island | 43% | Maine | 35% |
| Maine | 42% | Alabama | 34% |
Emergency savings remain limited
The research also found that 44% of Americans do not currently have money specifically set aside for financial emergencies.
More than a third (37%) said they had borrowed during the previous year to cover essential costs such as rent, bills, groceries, or petrol.
The findings suggest that financial security may depend on more than simply being able to cover monthly expenses. Having enough income left over to save, prepare for unexpected bills, and absorb financial shocks may also shape how households view financial security.
Eric Otten, Personal Finance Expert at Cashback Loans, commented: “There clearly isn’t one salary that makes every American feel financially secure. What feels like enough can vary significantly depending on where somebody lives, their household circumstances, existing income, debt, and regular financial commitments.”
“What’s particularly striking is the range of responses. More than a 3rd of Americans believe $100,000 or less would provide the financial security they are looking for, while almost half place that figure above $200,000.”
“Financial security isn’t necessarily about reaching one particular salary. Having enough room within a household budget to meet regular expenses, build savings, and prepare for unexpected costs can be just as important.”
The findings highlight substantial regional differences in income expectations and show that many US households have limited emergency savings.