Household income rarely moves in a straight line across life. Younger people usually start lower, mid-career households often hit their highest earning power, and income often tapers again in retirement.

Understanding where your income sits in this curve can be surprisingly empowering—it helps measure progress, spot gaps, and decide what to improve next.

Income by Age

Recent Survey of Consumer Finances (SCF) data from the Board of Governors of the Federal Reserve System show a wide spread in income depending on age. In 2022, the “middle” household (the median) earned $91,880 a year in the 45–54 age bracket, compared with $49,070 for households headed by someone 75 or older. Younger households fall somewhere in between, with median income rising steadily from under-35 through the mid-50s.

Why It Matters

These medians act like financial signposts. They won’t define anyone’s worth, but they can show whether income is in line with typical levels for a given life stage—or if there’s room to push higher.

The SCF defines “family” as the household’s primary economic unit: the economically dominant single person (or couple) plus household members who are financially interdependent with them. Income includes wages, self-employment and business earnings, interest and dividends, pensions, and withdrawals from retirement accounts, not just a paycheck.

Trends Over Time

To compare fairly over decades, the SCF adjusts past income into inflation-adjusted dollars. Looked at this way, a few patterns jump out:

– Under-35 households usually earn the least but often see the fastest early growth.

– Income climbs sharply into the 35–44 and 45–54 age ranges.

– The 45–54 group has either led or tied for top spot in every survey year.

– After mid-50s, income flattens, then drops noticeably beyond age 65 as paid work winds down.

Yu-Chien Kong, an economist, said that earnings growth is usually rapid early in a career and slows later as experience accumulates.

Young Stage

Under-35 households are often still laying foundations: finishing education, testing career paths, or sharing housing. Income at this stage is usually modest, and that’s normal. The goal here is less about matching national medians and more about building momentum. Actions that matter most now: gaining experience, choosing growth-oriented roles, and avoiding lifestyle creep that locks in high expenses before income settles.

Peak Earning Years

From roughly 35 to 54, earnings typically accelerate. Experience compounds, promotions kick in, and dual-earner households frequently hit their top combined income. That’s why the 45–54 group tends to sit at the top of the income chart. This phase is powerful for long-term wealth. High-earning years are when extra retirement contributions, debt payoff, and investing above the minimums can dramatically change future security.

Pre-Retirement Shift

For ages 55–64, income often stabilizes rather than surging. Some people keep climbing the ladder; others downshift roles, change careers, or deal with health or caregiving responsibilities that affect earning power. Fed data show income for this age group has grown strongly over time, but risk also rises: job changes can be tougher, and recovery time from setbacks gets shorter. This makes planning and resilience particularly important.

Life After 65

In the 65+ brackets, median income drops—yet that doesn’t necessarily mean weaker financial health. Many households at this stage lean more on pensions, investment withdrawals, and public benefits than on wages. The key question becomes not “How high is the income?” but “Is this income reliable and sufficient for the lifestyle and health needs ahead?” Low debt, controlled expenses, and steady retirement withdrawals can support a comfortable life even at lower income levels.

Grow Your Skills

Regardless of age, skills are the engine behind higher income. Continual learning—formal or informal—keeps earning power from stagnating. That could mean professional certifications, technical courses, leadership training, or even improving communication skills.

A useful mindset is to always think about the “next role” and what capabilities it demands. Positioning early for that jump can raise income more than years of cutting small expenses.

Use Work Benefits

Many employers quietly offer tools that can boost lifetime earnings and security. Tuition support, courses, internal training programs, paid certifications, and clear promotion tracks often go underused.

Tapping into these benefits can upgrade skills at a low out-of-pocket cost, opening doors to better-paid roles within the current company or elsewhere. It’s effectively a built-in “scholarship” for career growth.

Side Income Ideas

When a main salary feels capped, side income can bridge the gap. Depending on skills and availability, options range from consulting and tutoring to online services or project work.

There is no stigma in having more than one income stream; in fact, diversifying earnings can reduce overall risk. Just ensure extra work is sustainable and doesn’t jeopardize health or core job performance.

Save and Invest

Income is only half the equation. Two households with the same earnings can have completely different futures depending on how much they save and how they invest.

Building an emergency fund in a high-yield savings account, then steadily channeling surplus into long-term investments—such as diversified funds in retirement accounts—helps convert today’s income into tomorrow’s security. As pay rises, keeping lifestyle creep in check leaves more room for saving.

Conclusion

Wherever household income sits compared with others in the same age group, the most important levers remain the same: grow skills, use available opportunities, add income streams where possible, and consistently save and invest a portion of every paycheck. Instead of asking only “How much do we earn?”, a better question is: “What are we doing with what we earn today to make life easier tomorrow?”