(NEXSTAR) — The saying has always been “money can’t buy happiness,” but a new poll shows that may not actually be the case.
Empower, a financial services company, surveyed more than 2,000 Americans about their financial happiness. Almost 60% said that money can indeed buy happiness, but it comes with a hefty price tag: $1.2 million.
The “magic number” varied across generations, according to Empower. It was Millennials that had the steepest ask at almost $1.7 million.
That vastly outweighed almost every other generation. The slightly older Gen X age group said, on average, that it would take slightly more than $1.2 million to make them financially happy. For the Boomer generation, it would take just less than $1 million. The youngest, Gen Z, had the lowest price point at $487,711.
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Researchers pointed to the 2008 financial crisis, the COVID pandemic, and our current inflation as likely pain points for Millennials, causing them to set their sites on a larger bankroll.
Millennials, ranging in age from their late 20s to mid-40s, have among the lowest net worth, according to the Federal Reserve’s 2023 Survey of Consumer Finances. Those considered Gen Z had the lowest, at an average net worth of $183,500. Older Americans did, unsurprisingly, have the highest net worth.
However, Empower found that less than one in five Americans consider “financial happiness” in regard to their net worth. For a third of those surveyed, an extra $15,000 would be enough to improve their financial happiness for six months.
Even less — just $5,000 — would be enough for 17% of those polled. That number nearly doubled when the gain grew to $25,000.
What was “happiness” to those in the survey? According to Empower, that could be something as simple as being able to pay the bills on time or paying off debt. For about half of the participants, it meant being able to own a home or spending money on experiences with friends or family.
Over 40% of those surveyed by Empower said they feel their standard of living is declining, with “roadblocks” like expenses, debt, an inability to save, and not getting paid enough holding them back.
Thanks to inflation, high interest rates, the return of student loan payments, and rising costs almost everywhere, the situation may not improve any time soon. Over 70% of participants said they’re currently experiencing financial stress.
It wasn’t just money that Empower found could improve happiness. Almost one in four polled reported that a better work/life balance could make them happier. But, many reported they feel they aren’t being paid enough. Nearly 25% of those polled said they switched jobs within the last year, while 64% said they would leave their job immediately if they weren’t relying on a paycheck.
Data released earlier this year shows the median household income nationwide in 2022 was $74,755 in 2022 — nearly 1% lower than the year before when you account for inflation. Seventeen states saw household incomes dip last year, while another 28 reported no statistically significant change.
Empower’s survey found the average American needs an average annual salary of almost $285,000 to be happy. Gen Z respondents were on the lower end, asking for just over $128,000, while Millenials report needing more than $525,000 to feel happy.
So yes, money could buy happiness, it’ll just take quite a bit to get there.
Alix Martichoux contributed to this report.