The wealthiest 20% of American households (totaling 23.4 million households) comprise the affluent market and have annual incomes of $100,250 or more, according to Unity Marketing. Super affluents are the top 5% of households, with incomes of $180,000 or more; and the ultra affluent includes the top 2% of households, with incomes of $250,000 or more. While the most affluent households seem like an ideal target for marketers, Pam Danziger of Unity Marketing points out that there are only 2.5 million ultra affluent households and 5.9 million super affluent households, compared to a much larger number of generally affluent households.
The demographic differences of affluent households compared to all American households goes beyond income:
• They are more educated: 60% of affluent households are headed by someone with a college degree, compared to 31% of all households. Affluent shoppers are smart and do their research before making purchase decisions.
• They are more likely to be married: 80% of affluent households are married couples, including 84% of ultra affluent households. Many affluent households benefit from two incomes. The average single-earner household income is $65,938, compared to $106,081 for dual income households.
• They are less diverse than the overall population: Whites account for 80% of affluents, compared to 6% each for Black, Asians, and Hispanics.
• Americans reach affluence in an age window ranging from age 35 to 54, when they are in their peak earning years. Affluent Americans aged 34-44 spend 40% more on luxury goods than those aged 45-54. Following years of comprising the majority of affluent households, in 2010 35-44 year olds account for a smaller proportion (39.4 million households) than those aged 45-54 (42.0 million households). By 2020, the younger group (40.7 million households) will again outnumber the older group (38.8 million households). [Affluent Market, Demographics]
Source: “Demographics of Affluence,” Unity Marketing, Pam Danziger, President, 206 E. Church St., Stevens, PA 17578; 712-336-1600; pam@unitymarketingonline.com; www.unitymarketingonline.com. Price: Call for information.
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