Wealth Facts: Disposable Income in Central Pennsylvania

Wealth Facts: Disposable Income in Central Pennsylvania
March 2016
Category: Business

Disposable income refers to the amount of money that a household has left after income taxes have been taken out (gross income minus taxes). It is the money that is available for the household to spend and save. Similar to the other variables we have featured in our "Wealth Facts" series, Median Household Income and Net Worth, disposable income is often monitored as one of the many key economic indicators used to gauge the state of the overall economy. In this latest installment of Wealth Facts in Central Pennsylvania, we have broken down some facts about disposable income in the region.
disposable income in central pennsylvania
Overall, in the Central Pennsylvania region which encompasses Adams, Berks, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Perry, and York Counties, the average disposable income in 2015 was $57,151. This falls in the middle between the state and national averages for the same time period. In 2015, the average disposable income for Pennsylvania was $56,921. For the United States, the average was $58,080.
Breaking out the individual counties in Central Pennsylvania as shown in the following chart, Cumberland County households had the highest disposable income in the region last year ($62,461), followed by York County ($58,509) and Lancaster County ($57,313).
Average disposable income by central pa county from ROCK 
 The graph above displays the breakout of Central PA counties by the 2015 average household disposable incomes. The nine Central Pennsylvania counties are represented in blue and are compared with the overall averages for the region, state, and nation (green). Both Cumberland and York Counties on average, have a higher household disposable income than the region, state, and nation.

disposable income by age in central pa
In comparison with net worth by age groups, disposable income looks much different. While those aged 65 to 74 years old have a much higher net worth than the other age ranges in Central Pennsylvania, the groups with higher disposable incomes are those aged 35 to 44 years, 45 to 54 years, and 55 to 64 years. This is probably because those that are within the 35 to 64 year age range are more likely to be established in their careers and may even hold management, senior management, and ownership positions. The age ranges that are younger than 35 (particularly those younger than 25) are likely still in college, are at the beginning of their careers, and/or may hold more entry-level positions. Those above 65, while having a higher net worth, may be transitioning into retirement years, relying on pensions, investments, and social security for income.
The chart below shows the average disposable income by age group in Central Pennsylvania. Households that are between the ages of 45 and 54 had the highest amount of disposable income out of each of the seven age groupings ($69,805) followed by those households aged 35 to 44 years ($65,380) and 55 to 64 ($62,983).
Average disposable income by age group in Central PA from ROCK 

additional facts on disposable income in central pa
  • 22% of Central Pennsylvania households had an average disposable income between $50,000 and $74,999 in 2015.
  • 53.5% of households had an average disposable income below $50,000.
  • About 13% of households in the region had average disposable incomes that were more than $100,000.
  • Just under 86,000 households where the householder was 35 to 44 years old had over $50,000 in disposable income. This makes up about 58.9% of these households.
  •  Over 108,000 households where the householder is 45 to 54 years old have over $50,000 in disposable income, which accounts for roughly 60% of these households.

Disposable income over 50,000 in Central PA by zip code map from ROCK
The map above displays the total number of households across Central Pennsylvania with disposable incomes that were greater than $50,000 in 2015. The colored areas represent zip codes in the region. Lighter-shaded areas signify zip codes that have fewer households with disposable income greater than $50,000 while darker-shaded areas represent a higher number of households with a disposable income greater than $50,000.

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