Do You Rank in the Top One Percent?

Jun 05, 2023 By Triston Martin

To be in the top one percent of wage earners in the United States in 2019, the Progressive Economic Policy Institute (EPI) estimates that one would need an annual income of $758,434. The annual salary of the typical American worker is about $57,535.

Do you want to see how you stack up? DQYDJ.com has created a calculator to enter your salary and see where you stand with others. One percenters' incomes are on the rise. From 2009 to 2019, earnings increased by 20.4%, according to EPI research, but the wages of the bottom 90% increased by only 8.7%.

To put this into perspective, EPI also discovered that between 1979 and 2019, the richest 1% saw their salaries expand by 160.3%, while the bottom 90% saw their wages climb by only 26%.

However, the EPI data showed that the top 10% of earners make far less than the top 1%. The 2019 median income for those in the 90th to 95th percentile was $129,998. In 2019, those who earned between the 95th and 99th percentiles had an average salary of $210,511.

Connecticut citizens need an adjusted gross income of $955,261 or more to be considered part of the state's top 1% earners. A person needs an annualized gross income of $374,712 to be considered part of the top 1% in West Virginia.

The greatest earners are in coastal states like New York and California, while those in more rural areas like Mississippi and Arkansas have lower median incomes. To be in the top one percent in all but 12 states, annual income must be at least $500,000.

These estimates were arrived at by applying an inflation adjustment to 2018 IRS income data using CPI figures for 2022.

Top 1% by Net Worth

According to Forbes, one needs a net worth of at least $10,374,030.10 to be in the top one percent of households in the United States. According to Credit Suisse's 2019 Global Wealth Report, you'd need around $936,430 to be in the top 1% globally. The disparity can be attributed partly to the fact that the United States had the world's greatest economy for a considerable time. During this time, its citizens accumulated wealth faster than other countries. They were starting at $1,182,390.36 for the top 10% and $43,090,281 for the top 0.10% in the United States.

According to the Credit Suisse Global Wealth Report 2019, the wealth of the top 1% in the United States is increasing, albeit slower than in previous years.

Wealth growth has slowed recently, and the Swiss bank thinks it's because of mounting uncertainty and tensions in the USA over the past few years, such as the stock-market volatility, tension in the Middle East, trade war with China, and concern about expanding government debt. In contrast to the average annual growth of 5% over the prior five years, personal wealth growth slowed to 3% in the 12 months through mid-2019.

According to the Federal Reserve, the wealthiest one percent of Americans are seeing their share of the country's total wealth increase. From 2013 to 2016, the top 1%'s share of the nation's wealth increased from 36.3% to 38.6%, barely surpassing the combined wealth of the next nine percent of families.

Which Comes First, Wealth Or Income, To Be In The Top One Percent?

The top 1% can be more accurately ranked based on their net worth than their income. Individual income is the most appropriate metric for calculating the population's top one percent. The top 1% can be more accurately ranked based on their net worth than their income.

When several earners are in a home, the true income figure is masked by household income. For instance, a family may consist of two working parents and one child. This expenditure disparity cannot be explained by differences in household income either. The use of net wealth as the 1% cutoff is an improvement.

Because net worth is not spent, it avoids discussions about household spending and the cost of living. Net worth is the sum of a family's resources that still need to be spent.

The true indicator of how much 'extra' money a family has is what they have in their net worth. (Households in the top one percent by net worth also demonstrate a hockey stick pattern of increasing inequality.)

To Sum Up

According to recent data, one needs an annual income of $758,434 to be among the top 1% earners in the United States. Remember that a working American's median annual income is only $57,535. One study found that the top 1% of earnings in the United States made more than 19 times as much as the bottom 90%. The richest one percent see their wealth increase. Their income is up 160.3% since 1979, while the income of the lowest 90% has increased by only 26%.

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