Your yearly average income while pursuing F.I.R.E?

[scrabbler1]

My total wage earnings in my 23-year career, from mid-1985 through the end of 2008, were just over $1.1M. My average annual wages were just over $47k. My highest wage year was in 2000, my last year working full-time. I earned just under $78k. In 2001, I reduced my weekly hours worked so my pay got cut by nearly 1/2. In 2007, I did that again, reducing my pay another 21% (of the original FT pay).

But the value of the company stock I owned from 1997-2008 went from 5% of my annual pay in 1997 to nearly 10 times my annual pay in 2008, when I retired. Some of that was due to my declining pay, but most of it was due to the exploding value of the company stock.

 

[FIREd_2015]

Average - $75k (during FT working career, not incl. PT years)
Median - $64k (during FT working career, not incl. PT years)
Exceeded FICA limit - 15 times
Total lifetime wages to date ~ $1.8m (still have PT gig)

 

[MRG]

I've been pondering my SS estimate and this is helpful for me. I hit the FICA limit 20 of my 29 years at Megacorp.

 

[RobbieB]

Started in 1979 at 25 grand. Finished up 2014 at 85 grand. Pretty linear, with a few bumps.

 

[F.I.R.E User]

was just now looking at my income annually from MYSSA. Some years allot, some years not. How do u average that income and for how many years? Maybe hi or low would be interesting.

Add the total amount for each year divide by the years.

 

[F.I.R.E User]

Over 40 years of working, it is difficult to look at yearly average income without adjusting for inflation.

And I agree with a poll. Not too comfortable posting my personal numbers for all to see.

Inflation doesn’t matter. It’s the average of what you earned divided by the total years in the F.I.R.E journey. We are all anonymous here.

 

[F.I.R.E User]

If you made a million a year and spent 900K you'd still be working.



This seems like a question without a point to it..

The point is to get average salary.

 

[F.I.R.E User]

Yeah. The better question is are you an UAW, a AAW or a PAW. See The Millionaire Next Door for the references.

I suspect most here are PAW's.

The calculator?

 

[F.I.R.E User]

I pursued FIRE for ~45 years.... Started out at under <10k yr, ended up at well over 25 times that amount per yr. I guess I could figure out each yr and avg it... But not sure I see the point. Probably made more the last 5 years than I did on the entire 40 before that.

What was the average?

You're my BTD hero.

What’s that?

I topped out at $49K. Average is under $30K/yr and falling. Good thing I only spend half that much.

How many years to F.I.R.E?

honestly my last few years I couldn't even tell you. It really didn't matter, so much was getting socked away I only really knew the actual number at review/annual raise time. That's when my boss would print out the new numbers. But I was living like someone making less than half so it never really registered.

And the last 5 years were very different from the 5 before that, and the five before those. OP, you might want to make a poll, but without a tight framing it's not going to tell you anything. And a person who retired in 2020 can't be compared side by side with a person who retired in 2010, or even 2015 really.


(plus what state/country, COL, yada and more yada...)

Poll next time.

Started in 1974, escalated up to 60 hr weeks through the late 80’s, 90’s and early 00’s, then retired in 2014 after a few years of 16 hour weeks. I was an hourly worker, so my income was erratic and dependent on hrs worked. Just a rough guess - I’d say my yearly wages averaged 60-70k for 40 years.

How many did it take you to F.I.R.E?

Thanks!

Yup, never got to 100 grand. Even when we were both working we never made a 100 grand. Close, but no cigar.

Nah, we did the LBYM thing when we were working so we could retire. Then wifey died at age 60 so...

I'm gonna try to have some fun with that dough before I go -

Sucks to have a loved one pass away.

yup! 29 years pursuing FIRE.

Then achieved it but called myself semi-retired for the next 18 years. Those gigs topped out at about $10K, which wasn't bad for a three months of work each year.

Now finally have on W2s

Lean F.I.R.E?

So many ways to look at this. Our average income over 36 years was $49,102. We started the journey in 1982, I made $14,400 and she made $6,200, that's $20,600. However $20,600 inflation adjusted is $54,147 in 2018.
I used my SS statement numbers and inflated them using government inflation numbers, our average inflation adjusted income over 36 years was $71k. Our last 15 years we averaged close to $75k a year.
Our nestegg is larger than our lifetime earnings.


If you want to play, I put this google sheet together 3 years ago to find inflation adjusted income from your SS statement. Yours to play with, modify or fix, if you'd like.
https://docs.google.com/spreadsheets/d/1SsaRfRx_DBF38MssIvYVP2WrAIwgNhPyZ8B7xaBqXfs/edit#gid=0

Thanks. SS site is basic.

I'll say this much: In my 28 year career I reached the FICA limit every year but my first (and missed that one because I started mid-year). That gives an indication relative to inflation without being too specific.

Nice.

I'm not sure that revealing our incomes would tell much of a story, without also relating whether we've had other sources of income, such as inheritances, and pensions, to name a couple. I had a modest inheritance, and a fairly significant boost to the portfolio from selling 3 rental properties which I had the good fortune to own for 2 years, in a sharply rising market.



Agreed. To get something, you gotta give something. Well, maybe not around here but it's good form, in my opinion.

You can get average from SS site.

Between 2 of us, $750K while in megacorp. Started our own company in a different field, lost huge money for the first couple of years, broke even year 3 to 4, ended with about $450K in year 8 before we sold our company.

CEO?

For the last 20 years I worked, I ran my own business and earnings were all over the map, depending on business. But it was pretty good most of that time.

My total wage earnings in my 23-year career, from mid-1985 through the end of 2008, were just over $1.1M. My average annual wages were just over $47k. My highest wage year was in 2000, my last year working full-time. I earned just under $78k. In 2001, I reduced my weekly hours worked so my pay got cut by nearly 1/2. In 2007, I did that again, reducing my pay another 21% (of the original FT pay).

But the value of the company stock I owned from 1997-2008 went from 5% of my annual pay in 1997 to nearly 10 times my annual pay in 2008, when I retired. Some of that was due to my declining pay, but most of it was due to the exploding value of the company stock.

Good stuff.

Average - $75k (during FT working career, not incl. PT years)
Median - $64k (during FT working career, not incl. PT years)
Exceeded FICA limit - 15 times
Total lifetime wages to date ~ $1.8m (still have PT gig)

Cool.

I've been pondering my SS estimate and this is helpful for me. I hit the FICA limit 20 of my 29 years at Megacorp.

Started in 1979 at 25 grand. Finished up 2014 at 85 grand. Pretty linear, with a few bumps.

$25k a year in 1979 was really good salary.

 

[FlaGator]

more than I ever thought at 18

And, OP-what's the point?

 

[RetiredHappy]

@F.I.R.E User, not CEO. Just 2 senior managers in high tech Megacorp. Our CEO made 8 figures.

 

[targatom2019]

average about 89K for 25 working years(1995-2020) and retired at 50.

 

[F.I.R.E User]

more than I ever thought at 18

And, OP-what's the point?

Just to see what everyone makes to get there.

 

[FlaGator]

Just to see what everyone makes to get there.

It's not what you make, it's what you spend, save, and pay in taxes. In my case >20% of income was saved/invested during my peak earnings.

I'm still not answering your question as you wish. Not sorry, you have to figure it out on your own. See the first sentence above for guidance.

 

[F.I.R.E User]

It's not what you make, it's what you spend, save, and pay in taxes. In my case >20% of income was saved/invested during my peak earnings.

I'm still not answering your question as you wish. Not sorry, you have to figure it out on your own. See the first sentence above for guidance.

I know but still wanted to see where I stood. You don’t have to answer.

 

[jollystomper]

I reached the magic "35 years of maximum FICA taxes" level, to get the maximum SS benefit.

 

[Aiming_4_55]

Not yet retired, early 50's now.

Reached FI in mid-40s with expense budget of $60 - 65k, but did not RE: avg salary $95k. Starting salary was $22k in early 90's. 24 working years with w/ 14 max SS years.

After FI, the last 7+ years have been my highest income years. My salary more than doubled (or tripled with RSUs) and expense has intentionally increased to $80 - 85k. Strong consideration to RE in 2022, but might do OMY as the $$ is tempting and enjoying work, still reaching my personal goal to RE before age 55.

 

[pjigar]

Just to see what everyone makes to get there.

Its what you keep and invest matters. Nothing more, nothing less.


The Shockingly Simple Math Behind Early Retirement

 

[Gumby]

I made fourteen farthings per fortnight.

 

[Time2]

more than I ever thought at 18

And, OP-what's the point?

I would like to know, are the people that FIRE make there by earning $50k a year or are the majority that make it to FIRE earning $150k and more.
I think it is an interesting question and found that a least a few made it to FIRE with a middle class income. Yes I know those that make $150k think they are middle class, but I think $60k is middle class.

 

[Magus]

20 years ago (pre-fire): $16,600/yr
10 years ago (just learning about fire): $70,000/yr (plus wife @ $35k)
Today: ~$425k-$450k and hoping to get a new job at $500k+ here shortly, although this year will be much higher than that due to a liquidity event at work, plus another $45k in rental income next year (wife doesn't work anymore).

Once you hit $100k in income, promotions the pay starts to go parabolic. My next promotion in current role would either be to SVP ~$700k/yr or CFO over $1MM, although I do not expect to continue working long enough to hit that but definitely would if I worked another 7-8 years (or less).

Biggest expense 10 years ago - housing. Today - taxes, taxes and more taxes with saving/investing for retirement a distant second with housing a huge distant third. I'll pay more in taxes this year than any year for my total income except this year. Last year taxes were about 36% of my income in total, this year ~42%.

 

[Aerides]

I would like to know, are the people that FIRE make there by earning $50k a year or are the majority that make it to FIRE earning $150k and more.

Yes. Most of us spend a decade or 4 working toward retirement, and might well have had incomes wider than even that $100k range throughout a career.

 

[latexman]

I reached the magic "35 years of maximum FICA taxes" level, to get the maximum SS benefit.

Me too, and I'm waiting to 70 to claim!

 

[ShokWaveRider]

I made fourteen farthings per fortnight.

LOL

"I had to get up in the morning at ten o'clock at night half an hour before I went to bed, drink a cup of sulphuric acid, work twenty-nine hours a day down mill, and pay mill owner for permission to come to work, and when we got home, our Dad and our mother would kill us and dance about on our graves singing Hallelujah"

Monte Python - Four Yorkshiremen

 

[Time2]

Yes. Most of us spend a decade or 4 working toward retirement, and might well have had incomes wider than even that $100k range throughout a career.

Over 3 or 4 decades, inflation can be a lot of your $100k range. Our range over 36 years was $22k to $98k, but inflation adjusted it was more like $52k to $105k. Personally, I ranged from $14k to $49k non inflation adjusted, 30 years apart.