While 53% say the American Dream remains possible, another 41% believe the life of relative economic security the notion once conjured up is now out of reach, the survey of 8,709 U.S. adults found. That divide roughly held regardless of race, ethnicity, partisanship and education of respondents, the nonpartisan think tank found.
The findings may illustrate wishful thinking on the part of some respondents, depending on how one calculates what it takes to be living the American Dream. An analysis late last year from financial site Investopedia found that the American Dream costs about $3.4 million to achieve over the course of a lifetime, from getting married to saving for retirement.
That estimate would put the dream out of reach for most folks, given that the median lifetime earnings for the typical U.S. worker stands at $1.7 million, according to researchers at Georgetown University.
$3.4M is too low of an estimate. If you assume someone works from age 18 to 65, that’s 47 years of employment at an average of $72,300-ish per year. Now assume time for college, plus people make less early on in their careers. You’re looking at a $100k income.
$100k is probably enough to support a mortgage, two kids, insurance, essentials, bills, and retirement savings in some LCOL areas, but not in many places. In many parts of the US, that might cover a modest house and monthly bills, but there won’t be much left over; forget retirement.
My old brain still looks at a 6-figure income as “you’re rich.” In 2024, you’re not even close.