Average Income By Age in 2026

Introduction – Your Income by Age (0:00)

Bo: Your income is your greatest wealth building tool. But how does it compare to others your age? Guys, I am so excited about this because today, not only are we revealing the actual numbers by age, we’ll also give you some key takeaways to help you maximize the use of your income on your wealth building journey. So, let’s dive right in, starting with those of you in your 20s. By the way, these numbers are not meant to say that this is where you should be or that if your income is below this, you’re behind. They’re merely a reference point to give you an idea of where you stand.

Income in Your 20s (0:31)

Bo: In your 20s, incomes typically start at around $24,000 at age 20, jump to $45,000 by 25, and reach $59,000 by age 29. At this stage, many are just entering the workforce or maybe even still in school, which accounts for the lower starting income that jumps up as careers begin to take shape. So, what can you do at this age to maximize your income? Well, first of all, it’s important to have a written plan. You know, like the good old reliable Financial Order of Operations. This is our nine-step guide for what to do with your next dollar. And when you’re just starting out, especially, this can be a very valuable tool for maximizing your income. Second, control your two levers. Increase your income through things like side hustles and promotions, and decrease your expenses by paying down debt and keeping your lifestyle in check. And third, save what you can. There might not be a lot of margin in your life at this age with student loans, car loans, and other expenses, and that’s okay. Whatever you can put away, do it. When you’re 20, every dollar invested has the ability to turn into $88. But that number decreases the older you get. So, start saving as soon as you can to get compound interest working in your favor.

Income in Your 30s (1:48)

Bo: Moving into your 30s, incomes typically reach $55,200 by age 30, $64,000 by 35, and $67,000 by 39. The key takeaways here: first, don’t let financial planning fall by the wayside. The 30s are known as the messy middle. Responsibilities go up while both discretionary time and money go down. So, carve out time for your financial future. Second, make sure you get your estate planning in order. 78% of Americans between the ages of 18 and 36 do not have a will. Estate planning becomes critical in your 30s because you likely have dependents, assets, and debts that need protection if something happens to you. And third, get to 25% savings rate. Most folks begin investing around their mid-30s. If you haven’t already, this is where you become intentional with saving and investing.

Income in Your 40s (2:43)

Bo: Now, let’s move on to those of you in your 40s. Incomes hover around $65,000 at age 40, $70,000 by 45, and then back to $65,000 by 49. Many in their 40s are reaching peak earning potential, but that can often be offset by increased financial responsibilities like college funding, aging parents, and mortgage payments. Those can greatly impact your available income even as a higher earner. So, what should you focus on? Well, number one, re-evaluate risk. As you age, your risk capacity tends to trend downward. As you close out this decade, begin the shift from accumulation to preservation. This could also be a valuable time to revisit your long-term goals. How do you want to use your money to lead the life that you want to live? And most importantly, at this stage, keep going. You’ve made great progress, but don’t get comfortable. Make sure you’re still on track to meet your long-term financial goals.

Income in Your 50s (3:41)

Bo: Now, let’s take a look at income in your 50s. Incomes reach $70,000 at age 50, dip slightly to $65,720 by age 55, and then settle in right at $60,000 by 59. The 50s often mark a transition period. Some begin to downshift toward retirement, while others may experience income dips through the costs that come with aging, like rising health care costs. Here are the key action items for this decade. First, maximize catch-up contributions. In 2026, you can contribute an extra $8,000 to your 401(k) and an extra $1,100 to your IRA after age 50. Take advantage of these catch-up provisions to supercharge your retirement savings in the final stretch. Secondly, run the numbers on retirement. This is the time to get serious about your retirement plan. Calculate how much you’ll need. Project your income sources like social security, pensions, and investments and make sure that you’re on track to hit your number. And third, have a plan for health care. Health care costs rise significantly as you age. So start planning for Medicare, which begins at 65, and consider whether you might need some sort of supplemental insurance or long-term care coverage to protect your assets.

Closing (4:50)

Bo: If you want to know more about how wealth stacks up in America, click right here. And as always, keep building towards your great big beautiful tomorrow.