Boris_Zec / Getty Images 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. House ...

Core Insights - Household income and wealth significantly increase with age, particularly for families in the 35-44 age group, which is crucial for building financial strength [2][4][5] - The median household income for individuals aged 35-44 was $86,473 in 2022, ranking second only to the 45-54 age group [4][5] - Income disparities exist based on homeownership and education, with homeowners and college graduates generally earning more [3][5] Income and Wealth Analysis - The 35-44 age group is approaching its peak earnings phase, often managing multiple financial responsibilities such as mortgages, childcare, and college tuition [5] - The median income for the 45-54 age group is slightly higher at $91,878, while those aged 75 and older report a median income of $49,073, primarily from retirement sources [4][5] - The overall median U.S. household income was reported at $70,260, indicating broader income trends that likely affect the 35-44 age group as well [7]

Methodology Overview - The forecast employs a bottom-up approach consisting of 8 core steps, integrating income, savings, and wealth trends from previous generations with macroeconomic forecasts from Oxford Economics' Global Economic Model (GEM) [5] - Key steps include calculating savings rates, forecasting household income, estimating asset allocation, and mapping assets and liabilities to GEM forecasts [11][12] Key Findings - Millennial net wealth is projected to grow annually by approximately 9% in inflation-adjusted terms from 2022 to 2045 [15] - Millennial net wealth is expected to accumulate rapidly, outpacing total national wealth growth as savings rates and incomes peak in middle age [18] - The net wealth to income ratio for millennials is forecasted to follow a similar trend as previous generations, indicating consistent growth patterns [23] Asset Growth and Allocation - Wealth in equity and pension assets is anticipated to grow at the highest rates, with equity assets expected to increase by 12.9% and pension assets by 13.6% annually in real terms from 2022 to 2045 [28] - Millennial households primarily hold wealth in real estate, equity, and pension assets, with real estate expected to account for 34% of total wealth by 2045 [26] Income Distribution and Inequality - Households in the top income centile are projected to see the largest increases in net wealth, with a significant concentration of wealth among high-earning millennials [30][36] - The proportion of total net wealth held by the top 10% of earners is expected to rise from 51.9% in 2022 to 63.0% by 2045, indicating increasing wealth inequality [34]