Thursday, September 18, 2014

What Happened to the Nation's Peak Earners?

Median household income peaks in the 45-to-54 age group, but the peak is smaller today than it once was because of the staggering decline in the median income of the age group.

In 1999, the year when the nation's median household income reached its all-time high, the median of households headed by 45-to-54-year-olds was 40 percent greater than the overall median: $79,550 versus $56,895 (in 2013 dollars). Today, however, the median income of householders aged 45 to 54 is just 29 percent higher than the overall median: $67,141 versus $51,939. Between 1999 and 2013, the median income of householders aged 45 to 54 fell by a stunning 15.6 percent—a loss of more than $12,000, after adjusting for inflation.

Median household income in 2013 (and percent change since 1999; in 2013 dollars)
Total households: $51,939 (-8.7%)
Under age 25: $34,311 (-2.4%)
Aged 25 to 34: $52,702 (-10.4%)
Aged 35 to 44: $64,973 (-8.5%)
Aged 45 to 54: $67,141 (-15.6%)
Aged 55 to 64: $57,538 (-7.9%)
Aged 65-plus: $35,611 (+11.7%)

Source: Census Bureau, Income and Poverty in the United States: 2013

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