Income Gap Widens 10% Over Past 20 Years; Divide Growing Fastest Among 35 to 44 Year-Olds

 Income Gap Widens 10% Over Past 20 Years; Divide Growing Fastest Among 35 to
                                 44 Year-Olds

PR Newswire

NEW YORK, Dec. 9, 2013

NEW YORK, Dec. 9, 2013 /PRNewswire/ --The income gap in America is growing
fastest among 35 to 44 year-olds, according to a new (NYSE: RATE)
report. Within this age group, the divide grew 21% from 1992 to 2012. That is
higher than any other age group and more than double the average increase for
all age groups (10%).


Ages 35 to 44 are the prime earning years for many people and arguably the
most important for solidifying future wealth. There is still time to save for
retirement, but financial pressures such as homeownership, children and aging
parents abound. So while some members of this group are quickly advancing
toward becoming rich, others are just as quickly falling behind.

"These are key transition years," according to Chris Kahn, research and
statistics analyst for "Some of the reasons why the income gap
is growing so rapidly within this age group are persistently high
unemployment, as well as stagnant wages. This stagnation in income, combined
with rising prices, is making it more challenging for people to stay in the
middle class or move up."

These years can either build a bridge to a successful retirement or leave
people well short of their goals. "We're seeing a tale of two retirements,"
Kahn says. The 65-plus age group has long exhibited the widest income gap,
although it only rose three percent from 1992 to 2012.

The income gap among 45-54 year-olds rose 18% over the past 20 years, second
only to the 21% increase observed among 35-44 year-olds.

The bottom fifth of American households earn $11,490 annually on average; the
next fifth earn $29,696; the middle tier earn $51,179; the next $82,098; and
the top tier, $181,905.

Click here for the full report:

Click here to tweet about this: analyzed the household incomes reported to the United States
Census Bureau as part of their Current Population surveys from 1992 to 2012.
The ages refer to the age of the primary householder, and the income includes
the total household income. Data was analyzed using a set of codes developed
by Mark L. Burkey, a professor of economics at North Carolina A&T State

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For more information:

Caroline Farhat
Bankrate, Inc.
(917) 368-8638

SOURCE Bankrate, Inc.

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