How Americans define financial success

In this video, Vanessa Welch, Empower vice president for financial insights, interviews Rebecca Rickert, Empower’s head of communications and consumer insights, about the new research study, Secret to Success. Here is a transcript:

Vanessa Welch: Empower just launched a new study, Secret to Success. And here to talk to us about this study and some of the details is Rebecca Rickert. She is the head of communications for Empower. Becca, great to see you.

Rebecca Rickert: Vanessa, great to see you.

Welch: So, let’s start with the quantity. How do Americans view financial success today?

Rickert: On average, people say it takes a salary of $270,000 a year to be financially successful. But what’s interesting is how much this estimate varies by generation, particularly for Gen Z, who set the bar at $587,000 a year, which is nine times higher than the national average of what people earn today.

Welch: Becca, when the numbers came in, were you surprised by Gen Z’s response, that big 587 number?

Rickert: Not really. I think based on some of the economic forces that we just talked about. Right? Gen Z is coming up in this era marked by these major economic disruptions from the pandemic to the highest inflation rates, student loan debt, and a challenge… a challenging housing market. I think Gen Z is banking on needing a big financial moat around themselves to reach a future state of financial success.

Welch: Yeah. Makes sense. Let’s switch gears and talk a little bit about the qualities people associate with financial success. Your study identifies a “factor of four.” Walk us through those.

Rickert: Yeah. Well, the upshot is that people are their own secret to success, and they associate it with this “factor of four.” It’s hard work, talent, who you know, and a little luck. And the first three get you ready for when that serendipity comes.

Welch: What are some of the other hallmarks of success for people?

Rickert: Yeah. Well, all of our studies have shown that financial success and happiness is not just about reaching this magic number. You know, in our most recent study, for 40% of people, it’s about retiring at a goal age. And while working, enjoying the job you have; it’s the ability to pay bills on time, homeownership, and also about affording experiences.

Welch: I love that, Becca. If people are interested in more and they want to dive into this research a little bit more, go through all the details, where can they find your work?

Rickert: All of our research and insights can be found on The Currency, which is on Empower.com.

Welch: Love it. Thanks so much. Great interview.

Rickert: Thanks, Vanessa.

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