Before we look at average net worth by age, let me start by saying that there are pros and cons to even tracking your net worth. And while understanding where you stand compared to averages can be a useful benchmark, it can also be a futile exercise that focuses on you being the wrong thing.
Benefits and pitfalls of measuring your net worth against averages
Benchmarking your net worth with averages can provide useful context for understanding your financial situation. Allows you to measure whether you are Overall on the right track Compared to others in your age group. This perspective can motivate you to set realistic goals, adjust your financial habits, or celebrate progress toward milestones.
However, relying too heavily on standards has its risks. The averages do not take into account individual circumstances, such as cost of living, career paths or unique financial goals. It may make you feel unnecessarily frustrated if you’re below average, or overconfident if you’re above average, even if your financial habits need improving. (Note: Often times, people with a lot of money spend a lot of money and don’t really build wealth.)
Many retirement articles suggest that you need $1 million to retire. But this is not true for the majority of people. If you have low expenses and reliable income, much less savings will be needed, and a lower net worth is perfectly fine.
advice: Instead of 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 the Bouldin Planner to manage a comprehensive financial plan for the life you want.)
Average net worth of all households in the United States
Now that you have a perspective on measuring yourself against the average net worth, let’s take a look at the numbers. According to the latest Consumer Finance Survey (SCF) From the Federal Reserve:
- The average net worth of all Americans is $1,059,470
- The mediator is $192,700 (This is the most realistic and meaningful number.)
Yes. There is a big difference between mean and median. As a reminder:
- Average is another way of saying average. You can get the average by summing all the numbers, then dividing it by the number of numbers there are. The average can be skewed by really large and small numbers.
- The average net worth may seem high because of a handful of very wealthy people. It’s a less important way to measure your own situation.
- The median is the middle number when the numbers are ordered.
- The median net worth is more representative of the financial reality of the majority of families.
the He means It can deviate by really big or small numbers, however middle Shows data center more reliably when there are outliers.
Net worth by age
Net worth of people in their 20s
It should come as no surprise that the average net worth is low at this age. However, the more young people can save, the more they will be able to benefit from the magic of compound interest.
Age group 20-24
- Average net worth: $120,896
- Average net worth: $10,800
Age group 25-29
- Average net worth: $120,185
- Average net worth: $30,160
Net worth of people in their 30s
When people in their 30s start buying homes and increasing earnings, average net worth really starts to grow.
Age group 30-34
- Average net worth: $258,073
- Average net worth: $89,801
Age group 35-39
- Average net worth: $501,289
- Average net worth: $141,200
Net worth of people in their 40s
It’s interesting to note that the average net worth actually drops from $141,200 for people ages 35-39 to people ages 40-44. This may be due to competing priorities in midlife.
Age group 40-44
- Average net worth: $590,718
- Average net worth: $134,730
Age group 45-49
- Average net worth: $781,923
- Average net worth: $212,800
Net worth of people in their 50s
Your 50s are a good time to get serious about your future and determine if your current financial situation is right for retirement. As you can see, the average net worth of people this age is far from what most “experts” say is necessary for a secure future.
Age group 50-54
- Average net worth: $1,132,532
- Average net worth: $272,800
Age group 55-59
- Average net worth: $1,442,075
- Average net worth: $320,700
Net worth of people in their 60s
As you can see, there is good growth in average net worth from the 1950s to the 1960s, although it is much less than you might think. This does not mean that the majority of people retire in poverty, although retiring on Social Security alone is one thing.
Age group 60-64
- Average net worth: $1,675,214
- Average net worth: $394,010
Age group 65-69
- Average net worth: $1,836,884
- Average net worth: $394,300
Net worth of people 70 plus
People are often surprised to learn that retirement is not necessarily a time of diminishing net worth. It is not uncommon to see net worth grow, especially upon early retirement. (See How to Increase Wealth After Retirement.)
However, health care costs become a more important factor as you age and will play a large role in the net worth of people in their 70s and beyond.
Age group 70-74
- Average net worth: $1,714,085
- Average net worth: $433,100
Age group 75-80
- Average net worth: $1,630,969
- Average net worth: $316,000
How to Track Your Net Worth (and Other Important Financial Metrics)
When you build and maintain a comprehensive financial plan with the Boldin Retirement Planner, you can track a range of financial health metrics, develop positive financial habits, make stronger financial decisions, and stay on track toward the future you want.
Track net worth: Boldin Retirement Planner improves tracking of our net worth. What makes our approach unique is that we focus on your net worth over time, not just today. This long-term perspective can help you make better decisions.
- NEW: We now show you how your current net worth changes from month to month and we will develop more historical tracking over the coming quarters.
Financial Wellness Points: Perhaps even more important than your net worth, your Financial Wellness Score is an assessment of how you’re doing against more than 15 important metrics related to your money. This score paints a more personalized picture of your performance and includes your chance of success in retirement, next month’s cash flow, and more.
Dozens of other visions: The software is packed with charts, coach alerts, scouts, and other features to help you know where you stand. Most importantly, evaluate what you need to do to live the life you want.
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