“$145,000 Needed to Feel Secure”
Nearly Half of U.S. Families Fall Short as Cost Burden Grows
U.S. families with children need an annual income of about $145,000 to maintain a financially secure lifestyle, but nearly half fall below that threshold, according to a new study.
A report released March 16 by the nonpartisan Urban Institute found that about 49% of U.S. households do not meet the income level required for what it defines as “economic security.”
Data from the U.S. Census Bureau show that the median income for married households was $128,700 in 2024—well below the $145,000 benchmark outlined in the study.
Researchers said the estimate reflects the full range of modern living costs, including food, housing, health care, child care, transportation, education, student loan payments and savings for emergencies and retirement.
The study highlights how even relatively high-income households are struggling to keep up with rising expenses. “Many families are managing to pay their bills, but they’re not getting ahead,” a co-author of the report said, describing the situation as a “hamster wheel economy.”
Economic insecurity was particularly pronounced among certain groups. About 90% of single-parent households and roughly 80% of renters fall below the threshold, while about 45% of households with at least one member age 65 or older also fail to meet the benchmark.
Income needs vary depending on household type. Adults under 65 without children require about $95,900 annually, while households with at least one member over 65 need around $108,500 due to higher health care costs.
Geographic differences were also significant. Families with children living in urban areas require about $149,000 to meet their needs, compared with $129,500 for those outside metropolitan areas.
Experts say the findings underscore a growing gap between income and the real cost of living in the U.S. “Rising housing and health care costs are eroding financial stability, even for higher earners,” analysts noted. “The bar for economic security is clearly rising.”
