{"id":65225,"date":"2024-11-12T06:00:00","date_gmt":"2024-11-12T12:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?post_type=newsroom&p=65225"},"modified":"2024-11-11T21:51:16","modified_gmt":"2024-11-12T03:51:16","slug":"2024-outlook-on-american-life-report","status":"publish","type":"newsroom","link":"https:\/\/www.hrblock.com\/tax-center\/newsroom\/company-news\/2024-outlook-on-american-life-report\/","title":{"rendered":"H&R Block\u2019s 2024 Outlook on American Life Report Reveals Most American\u2019s Income Is Outpacing Inflation But Debt Threatens Future Prosperity"},"content":{"rendered":"\n

The fourth annual report draws from 11.4 million tax returns and four nationwide surveys to illustrate how four generations of hardworking Americans are faring <\/em>

KANSAS CITY, Mo. (Nov. 12, 2024)\u2014<\/strong>According to H&R Block’s 2024 Outlook on American Life<\/a> report released today, Americans are optimistic about their economic mobility, and the data shows they have reason to be. The fourth annual report from H&R Block (NYSE: HRB) details how most Americans (66%) across income levels and generations feel optimistic about their income growth, retirement prospects, and ability to maintain financial stability\u2014despite the threat of unmanageable debt.<\/p>\n\n\n\n

The analysis from this year\u2019s Outlook on American Life report draws upon anonymized, aggregated tax return data from the 11.4 million tax filers who H&R Block tax professionals assisted virtually or in one of 9,000 offices during tax season 2024. Tax returns from the past 25 years were also utilized to identify historical income trends across generations.

The report also includes findings from four nationwide surveys of 7,852 Americans fielded between July and August 2024 to gather perspectives on how Americans feel about their current financial situations. All surveys were weighted to be nationally representative of gender, age, ethnicity\/race, education and region. Among those surveyed were 1,503 Gen Z respondents, one of the largest surveys to date of Americans ages of 18 and 28.

Collectively, H&R Block analyzed billions of data points to paint a portrait of earning, investing, saving, career aspirations and debt trends among four generations\u2014Gen Z, Millennials, Gen X and Boomers\u2014representing hardworking Americans nationwide.

\u201cNearly 70 years of experience and preparing more than 20 million returns each year gives H&R Block a unique perspective on hardworking American\u2019s financial situations and the behaviors that are shaping the economy,\u201d said Curtis Campbell, President of Global Consumer Tax, H&R Block. \u201cWe understand that as the economy evolves, so do the needs of our clients. These insights, drawn from decades of anonymized, aggregated data and extensive research, enable us to help individuals, families and small businesses navigate their financial journeys.\u201d<\/p>\n\n\n\n

Each Generation Has Greater Income and Buying Power Than the Last<\/strong><\/strong><\/p>\n\n\n\n

This year\u2019s report found that most Americans, regardless of income and demographics, are optimistic about their income growth and ability to retire and maintain financial stability despite rising costs and debt. In fact, most Americans expect to exceed their parents\u2019 economic opportunities, including 70% of Gen Z, 65% of Millennials, 53% of Gen X and 60% of Boomers.<\/p>\n\n\n\n

Tax-return data shows this optimism is well-founded: 71% of Gen Z, 62% of Millennials, 56% of Gen X, and 51% of Boomers are earning income at rates that beat inflation. Gen Z experienced the largest relative increase in earnings, making 30% more in 2023 than they did in 2022. Of those surveyed, 60% of Gen Z and 53% of Millennials anticipate their financial situation improving in the coming year primarily due to rising income.<\/p>\n\n\n\n

Each generation has greater buying power as well. Gen Z is enjoying as much as 30% more buying power than Millennials at their same age. Similarly, Millennials enjoy as much as 30% more buying power than Gen X at their same age. Gen X has about 20% more buying power than Boomers at their same age.<\/p>\n\n\n\n

Shrinking Households, Market Gains and Tax Credits are Boosting Income<\/strong><\/p>\n\n\n\n

More Americans are opting not to have children, realizing a significant cost savings. On average, it costs $237,482 to raise a child to age 18.1<\/sup> The number of Millennials\u2014taxpayers in their childbearing years\u2014who file as DINKS (double-income-no-kids) has more than doubled in less than a decade, from 7% in 2015 to 16.7% in 2024.<\/p>\n\n\n\n

For those who do have kids, they are benefiting from tax credits. In 2023, the Child Tax Credit (CTC) collectively reduced Americans’ taxes by $74 billion and returned $48 billion to taxpayers through refunds.2<\/sup><\/p>\n\n\n\n

More Americans are benefiting from market gains as well. About 32% of H&R Block tax filers reported investment dividends and interest last year, up from 27% in 2015.<\/p>\n\n\n\n

Gen Z Is Job-Hopping, State-Hopping, and Investing Their Way to Success<\/strong><\/p>\n\n\n\n

Gen Z is more innovative and financially savvy than Americans might expect. This generation is changing jobs at unprecedented rates primarily to increase their salary. Masters of the side hustle, they are also earning more by starting new businesses, following their passions, and investing.<\/p>\n\n\n\n

One in three changed jobs last year and more than one-third did so to increase their salary. While a majority (59%) prefer to work for a large company as a salaried employee, 29% aspire to work for themselves by starting a business, influencing others on social media, or working as an artist\/maker.<\/p>\n\n\n\n

Nearly one in four (24%) drives for an app to augment their income, and more than half (51%) anticipate monetizing a hobby in the coming year. To help reach their financial goals\u2014which include buying a house (63%) and saving for retirement (86%)\u2014Gen Z is also investing, primarily through employer-sponsored plans (41%), as well as in cryptocurrencies (22%) and gold and silver (15%). Further, this generation is more than twice as likely as Millennials (9% vs 4%) to invest in fine art and collectibles.<\/p>\n\n\n\n

Job-hopping Gen Zers changed state residency more than any other generation last year, moving to cities where they could capitalize on more lucrative career opportunities. The top destinations for Gen Z were New York, Chicago, Brooklyn, San Antonio, and Austin.<\/p>\n\n\n\n

But Debt Is the Monster Lurking Under the Bed<\/strong><\/p>\n\n\n\n

While the cost of living might keep Americans awake at night, it\u2019s debt that threatens to derail future financial stability. Gen X is carrying the most credit card debt (55%), followed closely by Millennials (49%), Boomers (47%), and then Gen Z (39%) \u2013 though it\u2019s Gen Z that feels the most burdened. Of those holding credit card debt, as many as two in three people say their level of credit card debt is unmanageable. On top of credit card debt, as many as 1 in 6 Americans hold student debt, and more than a third say they have more student debt than they can manage.<\/p>\n\n\n\n

Ongoing financial pressure and spending continue to undermine Americans\u2019 ability to save. Nearly one in three taxpayers say they spent all or more than they earned last year. Almost one in five say that, without income, they wouldn\u2019t be able to cover household expenses for a full week. Gen X is the most likely to be \u201cnot at all confident\u201d that they are doing what is needed to meet longer-term goals, such as saving for retirement.<\/p>\n\n\n\n

\u201cNo matter their life stage, or tax situation, H&R Block helps hardworking Americans receive the best possible outcome at tax time\u2014with the care, dependability and expertise for which we are known,\u201d said Campbell.<\/p>\n\n\n\n

To learn more and read the full Outlook on American Life <\/em>report, please visit www.hrblock.com\/outlook-on-american-life\/<\/strong><\/a>. <\/strong>To view media assets, including a downloadable report and infographics, visit www.hrblock.com\/tax-center\/media-kit\/outlook-on-american-life-report-media-kit\/<\/a>.<\/p>\n\n\n\n

1<\/sup> \u201cAnnual Costs to Raise a Small Child Increased By 19.3% Nationwide to $21,681 Between 2016 and 2021,\u201d LendingTree. https:\/\/www.lendingtree.com\/debt-consolidation\/raising-a-child-study\/ \u200b  <\/p>\n\n\n\n

2<\/sup> \u201cFiling season statistics for week ending May 10, 2024,\u201d IRS. https:\/\/www.irs.gov\/newsroom\/filing-season-statistics-for-week-ending-may-10-2024<\/p>\n\n\n\n

# # #<\/p>\n\n\n\n

About H&R Block<\/strong>
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services<\/a>, financial products<\/a>, and small-business solutions<\/a>. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce<\/a>. Through Block Advisors<\/a> and Wave<\/a>, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News<\/a>.  <\/p>\n","protected":false},"excerpt":{"rendered":"

The fourth annual report draws from 11.4 million tax returns and four nationwide surveys to illustrate how four generations of hardworking Americans are faring KANSAS CITY, Mo. (Nov. 12, 2024)\u2014According to H&R Block’s 2024 Outlook on American Life report released today, Americans are optimistic about their economic mobility, and the data shows they have reason […]<\/p>\n","protected":false},"author":406,"featured_media":65188,"menu_order":0,"template":"","tags":[],"news-categories":[23341],"class_list":["post-65225","newsroom","type-newsroom","status-publish","has-post-thumbnail","hentry","news-categories-company-news"],"acf":{"post_rest_thumbnail_alt_id":""},"yoast_head":"H&R Block News Center | 2024 Outlook on American Life Report<\/title>\n<meta name=\"description\" content=\"According to H&R Block's 2024 Outlook on American Life report, Americans are optimistic about their economic mobility, and the data shows they have reason to be. 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