MYTH WARRIORS: Only 6% of all individuals in the US earn $100,000 USD a year!?

In the MYTH WARRIORS™ series we are targeting ideas to begin to assess whether they are credible or not (i.e., they are a myth, fallacy or even a lie). The target for this episode is, “Only 6% of all individuals in the US earn $100,000 USD a year!? Really?” (Really.)

The six-figure income threshold. It is bandied about in popular culture and media. It represents a demarcation of “success” (or does it?). How many people actually earn six-figure individual income per year in the US? Why does this matter? Well, if the majority of people in the US earn $100,000 or more and you earn $30,000 you are far below average and you may understand better how much you would need to increase your individual annual income to equal what the average individual earns. On the other hand, if you earn $100,000 or more and you feel like you “don’t have enough money” that may be accurate if the reality is that the majority of people earn $300,000 a year (you feel broke because you earn substantially less than the average individual). The data will then help us understand our financial choices. Are we average/middle class and therefore should be able to have average items? Or, are we far below average/ poor and thus are not able to afford average items? Or, are we far above average/ rich and thus are able to afford average items and a bit extra?

How many individuals earn $100,000 USD per year?
5.63% - U.S. Census Bureau, 2006
6.61% - U.S. Census Bureau, 2010 (http://www.census.gov/hhes/www/cpstables/032011/perinc/new01_001.htm)
So, roughly 6%. Six out of every 100 adults. 

Median individual income (Census, 2010) -  $26,197 / Mean - $38,337

If you earn $100,000 you are far above average (in fact you earn what 3-4 average income individuals do combined). It is not a myth, but an accurate assertion that 6% of individuals earn $100,000 a year or more.