Average Salary By Age In 2023 (2024)

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Updated: May 23, 2023, 12:07pm

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• Median American earnings peak at the 45 to 54 age range.
• The biggest jump in salary from one age group to the next is between 20 to 24 and 25 to 34, meaning that’s when most people make the most substantial jumps in their careers.
• Younger earners in the 16 to 19 age group tend to make an average of 49.92% less than older workers.

The data highlights the dramatic salary increase experienced by workers as they transition from the 20 to 24 to the 25 to 34 age group. This substantial leap in earnings signifies that the most impactful career advancements typically occur during this period, bolstered by factors such as skills development, educational attainment and work experience.

There’s also a stark wage disparity between younger earners in the 16 to 19 age group and their older counterparts. On average, these young workers earn 49.92% less, which can be attributed to factors such as limited work experience, a narrower skill set and occupying entry-level positions. This information is invaluable for policymakers, educators and employers alike, as it highlights the importance of skill development and work experience in bridging the income gap. As these younger individuals mature, expand their skills and accumulate work experience, their earning potential will significantly improve, ultimately driving the overall growth of their salaries throughout their careers.

• New Jersey, Massachusetts and Maryland are the states with the biggest income jumps from one age range to the next.
• New Hampshire is the state where young people have the highest average income, with a salary of $52,926.
• New Jersey is the state with the biggest pay gap between younger and older workers.

IncomeByZipcode.com’s2 comprehensive research has uncovered intriguing regional disparities concerning income progression across age groups in the United States. The states of New Jersey, Massachusetts and Maryland feature the most significant income jumps between age ranges. This emphasizes the unique economic dynamics of these states and implies that professionals in these areas may experience more substantial salary increases as they advance through various stages of their careers.

New Hampshire stands out as the state where young people command the highest average income, boasting a remarkable salary of $52,926. This data accentuates the favorable economic conditions for young professionals in New Hampshire, making it an ideal destination for ambitious individuals aiming to optimize their early career earnings.

Conversely, New Jersey exhibits the largest pay gap between younger and older workers, underlining the importance of understanding regional differences when assessing career prospects and income potential throughout the United States.

• The median salary for people older than 25 with a bachelor’s degree is 76.24% higher than for people older than 25 with a high school diploma.
• The median salary for people older than 25 with an advanced degree is 70.64% higher than for people older than 25 with a bachelor’s degree, and 143.54% higher than those with an associate degree.

The National Center for Education Statistics3 has provided interesting data that highlights how education level impacts earning potential. Individuals aged 25 and above who have a bachelor’s degree earn a median salary that is 76.24% higher than those who only have a high school diploma. This substantial difference emphasizes the value of pursuing higher education and the long-term benefits it can yield in terms of career growth and financial stability.

The data indicates that individuals over 25 with an advanced degree make a median salary that is 70.64% higher than individuals with a bachelor’s degree, and a remarkable 143.54% more than those with an associate degree. These findings show the profound influence of advanced education on salary prospects, highlighting the potential rewards of investing in graduate or professional degrees.

• The largest pay gap between genders is in the 45 to 54 age group.
• The smallest pay gap between genders is in the 16 to 19 age group.

According to data from the U.S. Bureau of Labor Statistics1, in the 45 to 54 age group, the male median annual wage of $72,228 is significantly higher than the female median annual wage of $57,096. This represents a difference of $15,132 or a 26.5% wage disparity in favor of males.

In the age group of 16 to 19, the gender pay gap is the smallest, with the median annual wage for males at $32,188 and for females at $31,096. This amounts to a difference of $1,092 or a 3.5% wage disparity in favor of males.

The insights drawn from the data highlight the gender pay gap is not consistent across age groups, but rather, it expands as individuals progress in their careers and reach higher income levels. This pattern indicates that a complex interplay of factors, such as career choices, professional growth and striking a work-life balance, might be affecting women more significantly during their mid-career stages.

Visit our hub to view more statistics pages.

1. U.S. Bureau of Labor Statistics
2. Incomebyzipcode.com
3. National Center for Education Statistics