Before we look at average net worth by age, I want to start by saying that there are pros and cons to tracking your own net worth as well. And while understanding where you stand compared to the average can be a useful benchmark, it can also be a futile exercise in focusing on what you’re doing wrong.
Advantages and pitfalls of benchmarking your net worth compared to the average
Benchmarking your net worth against the average provides useful information for understanding your financial situation. It allows you to evaluate whether Generally progressing well compared to others of the same age. This perspective can motivate you to set realistic goals, adjust your financial habits, and celebrate progress toward milestones.
However, there are pitfalls to relying too much on benchmarks. Averages do not take into account your individual circumstances, such as your cost of living, career path, or unique financial goals. Even if your financial habits need improvement, if you’re below average, it can be unnecessarily discouraging, and if you’re above average, it can make you feel overconfident. (Note: Too often people who have a lot of money spend a lot of money and don’t build true wealth.)
So many retirement articles suggest that you need $1 million to retire. But that’s not true for the majority of people. If you have low expenses and a steady income, you will need much less savings and a lower net worth is perfectly acceptable.
Hint: Rather than comparing yourself to others, it’s often better to focus on your personal progress and how your net worth matches your goals and life situation. (Use Boldin Planner to manage your comprehensive financial plan for the life you want.)
Average net worth of all U.S. households
Now that you have perspective to benchmark yourself against average net worth, let’s look at the numbers. According to the latest consumer finance survey (SCF) From the Federal Reserve System:
- The average net worth of all Americans is $1,059,470
- The median value is $192,700 (This is a more realistic and meaningful number.)
yes. There is a large difference between the mean and median. Remember:
- Mean is another way of saying average. Find the average by summing all the numbers and dividing by the number of numbers. The average value can be biased by very large and very small numbers.
- The average net worth may seem high because there are only a handful of very wealthy people. This is a less meaningful way to benchmark your own situation.
- The median is the middle number when the numbers are arranged in order.
- Median net worth is a better representation of the economic reality for the majority of households.
of average Although it can be biased by very large or small numbers, median Displays the center of the data more reliably when there are outliers.
Net worth by age
Net worth in your 20s
It’s not surprising that median net worth is low at this age. But the more money a young person can save, the more they can benefit from the magic of compound interest.
Age group 20-24 years old
- Average net worth: $120,896
- Median net worth: $10,800
Age group 25-29 years old
- Average net worth: $120,185
- Median net worth: $30,160
Net worth in your 30s
As people in their 30s start buying homes and their income increases, their median net worth actually starts to increase.
Age group 30-34 years old
- Average net worth: $258,073
- Median net worth: $89,801
Age group 35-39 years old
- Average net worth: $501,289
- Median net worth: $141,200
Net worth in your 40s
What’s interesting is that the median net worth actually decreases from $141,200 for 35-39 year olds to 40-44 year old net worth. It may be due to competing priorities in midlife.
Age group 40-44 years old
- Average net worth: $590,718
- Median net worth: $134,730
Age group 45-49 years old
- Average net worth: $781,923
- Median net worth: $212,800
Net worth in your 50s
Your 50s are a time to seriously think about your future and determine whether your current financial situation is optimized for retirement. As you can see, the median net worth of people of this age is quite far from what most “experts” say is necessary for a secure future.
Age group 50-54 years old
- Average net worth: $1,132,532
- Median net worth: $272,800
Age group 55-59 years old
- Average net worth: $1,442,075
- Median net worth: $320,700
Net worth in your 60s
As you can see, median net worth increased quite a bit from the ’50s to the ’60s, but it was much less than you might think. This doesn’t mean that the majority of people retire into poverty, but retiring on Social Security alone is problematic.
Age group 60-64 years old
- Average net worth: $1,675,214
- Median net worth: $394,010
Age group 65-69 years old
- Average net worth: $1,836,884
- Median net worth: $394,300
Net worth of people over 70 years old
People are often surprised to learn that their net worth does not necessarily decrease after retirement. It’s not unusual for early retirees in particular to see their net worth increase. (See How to Grow Your Assets in Retirement.)
However, medical expenses become an important factor as we age, and can make up a large portion of people’s net worth in their 70s and beyond.
Age group 70-74 years old
- Average net worth: $1,714,085
- Median net worth: $433,100
Age group 75-80 years old
- Average net worth: $1,630,969
- Median net worth: $316,000
How to track your net worth (and other important financial metrics)
Build and maintain a comprehensive financial plan with Boldin Retirement Planner to track a variety of financial wellness metrics, develop positive financial habits, make stronger financial decisions, and move toward the future you want. You can get back on track.
Net worth tracking: Boldin Retirement Planner powers your net worth tracking. Our approach is unique in that we focus on your net worth, not just today, but over the long term. This long-term perspective helps you make better decisions.
- New: Shows how your current net worth changes from month to month, and we plan to develop more historical tracking over the next quarter.
Financial Wellness Score: Perhaps even more important than your net worth is your Financial Wellness Score, which assesses how you’re doing on more than 15 important money-related metrics. This score gives a more personal picture of your situation, including your chances of success in retirement, your cash flow next month, and more.
Many other insights: This software is packed with charts, coach alerts, explorers, and other features to help you see where you stand. And more importantly, evaluate what you need to do to live the life you want.
