Many Americans Are Not Happy With Their Salaries — but 79% Said This Number Would Satisfy Them
A recent survey found that Americans are satisfied with most aspects of their working lives — but many find their salary to be unsatisfactory. According to Ipsos’ June Consumer Tracker survey, 82% of Americans are satisfied with the work that they do, 78% are satisfied with the company they work for and 73% are satisfied with their boss or manager. But when it comes to their salaries, that percentage drops to just above half, with 58% stating that they are satisfied with their income.
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“These statistics are not surprising,” said Heather Matalon, CEO and co-founder of NAV, a digital career optimization and advocacy tool. “With the tightening of the economy, more employees are holding on to the jobs they currently have and may report being satisfied given their perception of the alternative options in the marketplace. The problem with this thinking is that they are settling for less money than they should be earning — which is revealed in their dissatisfaction with their current salary — and most likely, their skillset and experience are outpacing their income.”
Couple that with rising prices, and that could lead to increased dissatisfaction with how much they’re being paid.
“The inflation of the last few years is obviously stressful, and then there are important parts of the economy where prices are rising especially fast,” said Scott Lieberman, founder of TouchdownMoney.com. “You might enjoy your work, but if you’re struggling to pay the rent or make mortgage payments, you’ll still wish you were earning more.”
However, the percentage of Americans satisfied with their income rises significantly among higher-income earners, with 79% of Americans earning over $125,000 saying that they are satisfied with their salaries. Here’s a look at why $125,000 could be the “magic number” for salary satisfaction.
It Allows Most Americans To Cover Their Basic Needs
With inflation taking a hefty bite out of Americans’ paychecks, many are struggling to cover basic necessities. But for most people, $125,000 will be enough to cover their needs without having to stress.
“At our baseline, we want security: Food in our tummies. A roof over our heads. Physical safety. Health. Think Maslow’s hierarchy of needs,” said Amy Oguntala, senior vice president and managing director at Wealth Enhancement Group. “One-hundred twenty-five thousand dollars is the rough order of magnitude that comfortably covers these basic needs.”
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People who have reached this income threshold have thus far been able to get by without really feeling the effects of inflation.
“For those making over $125,000, the impact of inflation has not set in,” said Jerry Smith, financial professional at JL Smith Associates. “They know that it now takes more money to live life. However, the sacrifices associated with today’s economic environment have not fully impacted them yet. These Americans are still in the initial stage of dealing with inflation and are hoping that time is on their side. However, the clock is ticking quickly, and it is only a matter of time before they too must start making sacrifices in their personal lives.”
It Can Make You Feel Valued
There is likely also a psychological piece to the increased satisfaction among higher-income earners. While you shouldn’t equate your self-worth with your salary, many Americans do.
“Those making $125,000 or more may believe that a salary in the six figures is an accurate measure of their worth,” NAV’s Matalon said, “and [therefore] report being satisfied.”
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This article originally appeared on GOBankingRates.com: Many Americans Are Not Happy With Their Salaries — but 79% Said This Number Would Satisfy Them
