Your Age and Location Matter More Than You Think: Breaking Down America's Average Yearly Income

2026-01-12 17:50:11

Where you work dramatically shapes what you earn. A 30-year-old professional in Connecticut pulling down $97,380 versus their counterpart in Mississippi earning $58,641 tells a story beyond mere numbers—it’s about regional economies, industry concentration, and opportunity distribution. New research from Scholaroo reveals just how starkly average yearly income varies across the country, and generational factors amplify these disparities even further.

The Generational Wage Hierarchy

Generation X dominates the earnings ladder across America, commanding the highest salaries nationwide. Yet this dominance isn’t universal. In Mississippi, the story flips: millennials, Gen X, and baby boomers all bottom out with nearly identical median income figures, suggesting regional economic stagnation across all age cohorts.

Gen Z faces the steepest climb. Already struggling with the lowest average yearly income across the nation, they hit rock bottom in West Virginia—a generation just starting careers facing structural headwinds. Meanwhile, baby boomers find their sweetest payday in Hawaii, where median income for the 65+ crowd reaches $77,957, the highest in the nation for that age bracket.

The Geographic Salary Divide: Coasts Win

The pattern is unmistakable: coastal and tech-hub states crush inland competitors. Professionals aged 25-44 in Massachusetts earn $108,536 on average yearly income, while those in Louisiana bring home $64,889. That’s a 67% gap.

The top tier for prime earning years (ages 45-64) tells a similar story:

Maryland: $119,307 (highest)
Connecticut: $107,844
Hawaii: $108,693
New Jersey: $117,412

Compare these to the bottom performers:

Arkansas: $64,247
Louisiana: $64,298
Kentucky: $70,914
Mississippi: $60,998

For young professionals (ages 15-24), the premium states like New Hampshire ($58,255), Washington ($54,660), and Utah ($54,506) still lead, but the gaps narrow—suggesting early-career standardization before regional factors amplify differences.

The Retirement Income Reality Check

What happens when you clock out? For seniors 65 and over, median income drops 40-50% across most states, but geography still matters. Hawaii’s retirees ($77,957) maintain twice the average yearly income of Mississippi’s ($41,013). Even in retirement, your zip code is your destiny.

The surprising finding: West Virginia’s young workers earn just $27,380 (the absolute lowest starting salary nationally), yet their retirement income barely improves to $41,438. Meanwhile, young Alaskans start at $60,279 and retirees hold $66,292—suggesting stronger cumulative wealth building in resource-rich states.

What This Means for Your Career

If you’re early-career, location arbitrage matters. Moving from a low-wage state to a high-wage hub could double your income bracket within one age group. For mid-career professionals (45-64), the premium is steepest—and geographic choice by age 25-44 compounds into the biggest earnings spread during peak years.

The data reveals that average yearly income isn’t just about hustle or credentials—it’s shaped by where those credentials are deployed. This Scholaroo analysis, current through May 2024, gives you the roadmap.

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