Financial planner Empower has released a study on Americans’ thoughts on money and happiness. The findings reveal that while 59% of Americans believe that money can buy happiness, with an estimated cost of around $1.2 million, only 17% said financial happiness can be defined by a specific net worth. Two-thirds of respondents view financial happiness as being able to pay bills on time and being debt-free.
Empower surveyed 2,034 Americans over the age of 18 during August for the study. When asked about financial happiness, the most common response was “freedom,” followed by “security” and “relief.” On average, respondents said they needed a salary of $284,167 per year to be happy financially. Interestingly, men’s price point was significantly higher than the average for women.
The study also revealed a generational divide in terms of how much money people need to be happy. Millennials require the highest salary at $525,000, while Generation Z needs $128,000, Generation X needs $130,000, and Boomers need $124,000. Additionally, more than seven in ten respondents said that having more money would solve most of their problems. However, due to high inflation and interest rates, 73% of Americans reported feeling financial stress and many stated they may have to delay retirement entirely.