Why Lower Intelligence Sometimes Leads to Higher Income: What the Data Really Shows
A new study is challenging one of society’s core assumptions: that higher intelligence reliably leads to higher income. According to Swedish research examining 59,000 men who completed a military aptitude test and were tracked through their careers, the relationship between intelligence and earnings is far less straightforward than many believe.
The study found that intelligence strongly influences income up to a certain point about 670,000 Swedish krona (roughly $64,000). Beyond that level, the connection weakens dramatically. Among top earners, the pattern actually reverses: individuals with lower intelligence scores often earn more than their higher-scoring peers. The top 1% of earners in the U.S., for example, typically make at least $597,000 before taxes, and many reach that level without exceptionally high IQs.
Part of the explanation comes from career choices. Highly intelligent individuals frequently gravitate toward prestigious but lower-paying fields such as research, academia, engineering, or public service. These careers require advanced education, offer intellectual fulfillment, and hold social prestige but they rarely come with top 1% salaries. Meanwhile, the highest-earning people in the U.S. are overwhelmingly business owners, not employees, and entrepreneurship does not reward intelligence as consistently as other traits.
Risk tolerance plays a key role. Individuals with moderate intelligence may be more willing to take business risks because they have fewer traditional career paths open to them or because they see entrepreneurship as their best opportunity for upward mobility. Highly intelligent individuals, in contrast, often select secure careers with stable advancement ladders, reducing the likelihood of pursuing high-risk, high-reward ventures.
Interpreting income studies also requires caution due to statistical limitations. The “ceiling effect” in intelligence testing means only a small number of people can achieve the highest possible scores, making comparisons at the top difficult. Survivorship bias adds another layer only the winners in high-risk fields are counted when looking at top earners, leaving out the far larger pool of unsuccessful attempts. And because the Swedish study focused solely on men, income patterns for women, which often follow different trajectories, remain unaccounted for.
Income and wealth are influenced by far more than raw intelligence. Social connections, access to capital, and generational advantages can elevate individuals into high-paying roles regardless of ability. Luck also plays a role in business outcomes, market cycles, and timing.
Ultimately, the study underscores the importance of realistic career planning. Success requires self-awareness choosing paths that fit personal strengths, risk tolerance, and market demand. Not everyone is suited for high-paying professions, and chasing income without the right skills can lead to debt and disappointment. Meanwhile, individuals with strong trade skills can outperform many professionals if they excel in their fields.
The relationship between intelligence and income is far more complicated than most people assume. In many cases, the smartest person in the room isn’t the richest and the richest person isn’t the smartest.
All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.
