A high-paying job and homeownership are two big milestones that many people strive toward, but setting unrealistic expectations can make the journey feel discouraging. Most people expect to land their dream job at 29 and buy a house at 30, according to a recent Empower study.
Survey respondents also expected to earn six figures at 35, become debt-free at 41, and retire at 58. It's good to have ambitious goals, but most people are falling short of these benchmarks. It's good to know that, because you can choose to adjust your goals or adjust the effort you're putting in toward your goals.
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How Those Numbers Stack Up With Reality
Although most people expect to land a dream job by 29 and earn six figures by 35, the data indicates you'd have to be an exception to the rule. The Bureau of Labor Statistics found that of the nation's 121.5 million full-time wage and salary workers in Q2, the median weekly earnings came to $1,196. It's a 4.6% year-over-year improvement, but assuming a 52-week work schedule, it only comes to $62,192.
You have to earn more than the average person to reach six figures at any point in your life, but that's not the only place where the numbers suggest an uphill battle. The National Association of Realtors conducted a 2024 survey that found the median age of new home buyers is 38, which is up from a median age of 35 compared with 2023. Meanwhile, the typical repeat buyer age jumped from 58 in 2023 to 61 last year.
Empower survey participants were a little closer with the retirement number, but they were still off the mark. While the current expectation is to retire at 58, a 2024 MassMutual survey found that the average retirement age is actually 62.
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Start Saving Now
The lofty goals of the survey participants aren't the only lesson you can get from the Empower study. Empower also found that 45% of people wish they had started saving earlier. It demonstrates that although the best time to save money was a few years ago, the second-best time is right now.
The research also found that Americans think you should start saving for retirement at 27. That's the most attainable goal on this list for people who are in their 20s. Saving money now can help you build a nest egg, and that's something many Americans are doing. Empower found that 42% of Americans view retirement planning as the most significant wealth-building opportunity.
Saving money doesn't just help with retirement, but it also makes major life events easier to manage financially. More than 40% of the survey's participants had built a larger emergency fund before making a major life change. Notably, 80% of participants said they should have set aside more money for financial emergencies.
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It's Possible, But It Won't Be Easy
Some people hit all of the benchmarks described in the Empower survey. The numbers presented earlier demonstrate that most people don't achieve those milestones within the specified ages, but you can be the exception to the rule.
It's good to take note of what others have done to prepare for buying a house, and Empower collected that data. More than half of the survey's respondents created or updated a budget leading up to a home purchase, while 38% paid off existing debts like credit card balances and student loans.
You don't have to wait until you are ready to buy a home to start taking these steps. Respondents also cited retirement planning, buying a home, and investing in stocks as the three most significant wealth-building opportunities. Pursuing these options while building your career and income can help you check off these milestones.
Ultimately, you don't have to check off each item at the exact time the Empower survey suggests. You can take your time, build up your career and finances, and ensure that you aren't rushing into a major life decision.
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