Generational Income Gaps Revealed: Where Americans Earn the Most by Age and State

Your paycheck tells a different story depending on where you call home. A recent analysis by Scholaroo sheds light on how median salary patterns shift dramatically across America, with age and geography creating stark income divides that reshape financial planning strategies.

The Big Picture: Who’s Earning What

Generation X leads the nation in overall compensation, but Mississippi tells a different tale—here, Gen X, millennials, and baby boomers all cluster in the lower income brackets. Meanwhile, Gen Z struggles with the lowest salaries nationwide, particularly in West Virginia where the median salary dips to just $27,380 for ages 15-24. Baby boomers are carving out their best retirement years in Hawaii, where median income for seniors reaches $77,957.

Peak Earning States: Where Your Age Matters Most

The picture shifts significantly when you zoom into high-income regions. Massachusetts median salary stands out as a powerhouse for mid-career and older workers. The 25-44 age group earns $108,536, while those in their peak earning years (45-64) pull in $115,864. This pattern reflects Massachusetts’ concentration in tech, healthcare, and finance sectors.

California and Colorado follow similar trajectories. Young professionals aged 25-44 in California earn $100,620, climbing to $107,236 for the 45-64 demographic. Colorado mirrors this with $99,253 and $106,655 respectively. New Jersey, Connecticut, and Maryland round out the top tier, each offering $117,412 or higher for workers in their prime earning years.

The Age Factor: When Your Paycheck Peaks

The data reveals a consistent pattern: earnings typically peak between ages 45-64 across most states. In fact, Hawaii shows this clearly with $108,693 for this cohort versus $94,201 for the 25-44 group. Alaska demonstrates even steeper growth, jumping from $96,771 to $102,313.

Young earners (15-24) start considerably lower, ranging from $27,380 in West Virginia to $60,279 in Alaska. This $33,000 gap illustrates how geographic location compounds age-related income inequality. The transition to ages 25-44 brings dramatic increases—typically 60-100% jumps—suggesting mid-career advancement opportunities or job-switching benefits.

States with Modest Earnings Across All Ages

Not all regions share the wealth evenly. Mississippi maintains consistently low median salary figures: $36,457 for young workers, $58,641 for ages 25-44, and just $60,998 for the 45-64 group. Louisiana, Kentucky, and Oklahoma show similar patterns, with the 45-64 demographic barely exceeding $70,000.

West Virginia, New Mexico, and Oklahoma represent the lower quartile nationwide. In these states, even peak-earning adults (45-64) typically earn under $75,000. This $50,000+ gap between high and low states for the same age group underscores how location dramatically impacts lifetime earnings.

Retirement Reality: The Income Drop-Off

Post-retirement income (65+) shows a universal decline, but the degree varies substantially. Hawaii seniors earn $77,957 compared to just $41,013 in Mississippi—nearly doubling the disparity. Maryland ($69,070), Virginia ($61,447), and Connecticut ($65,053) offer more stable retirements than Arkansas ($42,943) or Kentucky ($43,927).

Regional Standouts Worth Noting

Massachusetts median salary earners enjoy some of the nation’s highest compensation throughout their careers. Utah presents an interesting case: though younger earners ($54,506 for ages 15-24) fall behind northeastern states, the 45-64 demographic surges to $111,825. Washington state shows consistent strength, with $102,996 for ages 25-44 climbing to $110,130 for peak earners.

New Hampshire rounds out the top tier with $101,859 for mid-career workers and $114,313 for ages 45-64. These northeastern and western states share similar traits: strong professional services sectors, tech hubs, and higher costs of living that drive wage inflation.

What This Means for Career Planning

The data underscores that your earning potential depends on three variables: age, location, and career timing. Young professionals considering relocation should note that moving from Mississippi to Massachusetts could mean earning $72,000+ more during ages 25-44. The median salary differences compound over decades, creating multi-million dollar lifetime earnings gaps.

Career switchers should also note that peak earning years (45-64) represent the wealth-building window. States offering higher median salary figures in this bracket provide critical years for retirement savings and asset accumulation.

All data sourced from Scholaroo and accurate as of May 29, 2024.