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The Average Salary: How Do You Compare?

Are you wondering what the average salary is in the United States? After taking age, gender and education into consideration, the average salary for Americans is $48,665.

Keep reading to learn how these three factors affect your average salary, compare your salary against other industry salaries and learn how to increase your income.

1. Age

average salary varies by age

In general, the younger you are, the lower your salary will be because of the limited amount of work experience you have.

A 16- to 19-year-old makes around $21,840 per year, but as these individuals graduate from college or grow in their careers, their salaries will increase because of gained work experience. In general, 25- to 34-year-olds will make $39,416 per year.

The peak income for the average American occurs in the late 40s and early 50s, when people are most often at the top of their careers and in the process of either raising children or paying for their kids’ college tuition.

However, the average salary will decrease after your 50s since most people start retiring at this age. On average, people aged 65 and older make $46,176 per year, which is slightly less than what 35– to 44-year-olds make ($49,400 per year).

education affects your average salary

2. Education

The average salaries for recent college graduates will mainly depend on their majors and work experience. For example, engineering majors earn around $64,891 per year whereas teachers make roughly $34,891 per year.

Regardless of major, individuals with college degrees earn 56% more on average than those with only high school degrees. Earning a college degree, no matter your major, increases your chances of earning a higher salary.

3. Gender

For full-time employees over the age of 25, there is a difference in income between men and women. On average, women earn $784 per week or $40,768 per year, whereas men earn $969 per week or $50,388 per year.

How Can I Increase My Income?

You can increase your income by opening a FDIC-insured savings account that allows you to earn interest income and let it build over time. Additionally, you can open an individual retirement account (IRA), which allows you to build up your savings and offers different tax advantages.

Synchrony Bank does not provide tax advice, so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA. 

Start Saving Today with Synchrony Bank

No matter if you’re above or below the average salary, you can begin saving with the help of Synchrony Bank. We offer FDIC-insured accounts up to $250,000 per depositor for each ownership category.

Open an account today or call 844-345-5789 to learn more about our savings products.

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Sources:

Social Security Administration: https://www.ssa.gov/oact/cola/AWI.html 

Business Insider: http://www.businessinsider.com/the-average-salary-for-americans-at-every-age-2017-4Bureau of Labor Statistics: https://www.bls.gov/cps/cpsaat37.pdf

Time: http://time.com/money/collection-post/3829776/heres-what-the-average-grad-makes-right-out-of-college/

USA Today: https://www.usatoday.com/story/money/2017/01/12/pay-gap-between-college-grads-and-everyone-else-record/96493348/ 

Bureau of Labor Statistics: https://www.bls.gov/cps/cpsaat37.pdf

Investopedia: http://www.investopedia.com/terms/i/ira.asp


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