About 68% of Black adults in the United States feel they do not currently have enough income to achieve the lifestyle they desire. Nevertheless, a majority express optimism that they will reach that point in the future, as shown by a recent survey conducted by the Pew Research Center on Black Americans.
This study is based on a Pew Research Center survey aimed at understanding the economic sentiments and aspirations of Black Americans.
The survey involved 4,742 U.S. adults who self-identify as Black alone and non-Hispanic, Black and at least one other non-Hispanic race, or Black and Hispanic. Data collection took place from February 22 to March 5, 2023, comprising 1,745 Black adults from the Center’s American Trends Panel (ATP) and 2,997 Black adults from Ipsos’ KnowledgePanel. Participants on both panels were chosen through national random sampling of residential addresses.
The recruitment of panelists through phone or mail ensures that a wide representation of Black U.S. adults is selected, giving confidence that the sample is reflective of the overall population. (For further information on random sampling, please consult our Methods 101 explainer.) To learn more about the survey’s methodology and questions, refer to the provided resources.
This analysis also includes calculations of individual total earned income obtained from the 2021 American Community Survey by the U.S. Census Bureau. This information was accessed via the Integrated Public Use Microdata Series (IPUMS) from the University of Minnesota.
The survey reveals that Black adults with higher incomes (64%) are more likely to believe they are currently earning enough to sustain their desired lifestyle compared to those with middle (36%) or lower (17%) incomes.
Similarly, 43% of Black adults holding at least a bachelor’s degree feel they have sufficient income to meet their lifestyle needs, while a lower percentage of those without a bachelor’s degree (26%) share this sentiment.
Irrespective of their current income levels, the majority of Black adults (58%) are confident that they will achieve their desired financial status in the future. This positive outlook is consistent across various demographic segments of Black Americans.
When it comes to financial matters, Black adults with lower incomes are less optimistic. Approximately 49% believe they will reach a point where they can earn enough money in the future, but an equal 49% doubt they will achieve financial sufficiency. Conversely, Black adults with middle and upper incomes are more inclined to believe they will attain the financial stability they desire than not.
Among those currently satisfied with their financial situation, about 81% of Black adults are confident they will maintain their financial comfort in the future. In contrast, around 48% of Black adults currently facing financial challenges are hopeful they will have financial security in the future.
Determining the Ideal Income
Forty percent of Black adults in the United States indicate that an annual income of $100,000 or more is necessary to lead the life they aspire to have. However, a majority, 56%, believe they can achieve their desired lifestyle with less than $100,000 per year.
Overall, individuals with higher incomes (72%) are more inclined to consider an annual income of $100,000 or more as necessary for their desired lifestyle, as opposed to only 46% of those with middle incomes and 27% of those with lower incomes.
Black adults holding at least a bachelor’s degree are also more likely than those with some college education or less to believe they require an income of $100,000 or above (56% versus 35%, respectively). Additionally, Black adults aged between 18 and 49 (43%) are more likely than those 50 and older (35%) to share this opinion.
Income Levels among Black Americans
Historically, incomes of Black Americans have lagged behind those of other Americans. Additionally, income inequality within the Black American community was the second largest among any demographic group as of 2016, with the highest earners making nearly ten times more than the lowest earners that year.
Only 6% of Black adults in the United States earned an annual income of $100,000 or more in 2021, according to our analysis of the Census Bureau’s American Community Survey. This percentage increases to 16% among individuals holding a bachelor’s degree or higher and decreases to 2% among those with some college education or less.
Nevertheless, among those who believe they require an annual income of $100,000 or more to achieve their desired lifestyle, approximately 62% of Black adults are optimistic that they will reach this income level in the future.
Note: For more details about this survey, you can refer to its methodology and questionnaire.
