The average net worth by age in America (2024)

Have you ever wondered how you stack up against other people financially?

It’s not uncommon to want to measure your financial situation with others who are in a similar age range or stage of life. These comparisons are often made on an income basis. In other words, how much money do you make compared to other people your age or in your life stage?

But it’s sometimes more revealing to make the comparison on the basis of net worth, including net worth by age.

Why is net worth important?

But why does “net worth” even matter?

Everyone has a net worth. Your net worth is a key indicator of your financial health, and knowing yours can help you manage your money better.

Your net worth is a bird’s eye view of your complete financial situation. Tracking it over time is a valuable indicator of your financial stability.

Average net worth by age

Empower conducted proprietary research to determine the average and median net worth of our typical dashboard user. Following are the average and median net worth of these individuals, broken down by age.*

Age by decadeAverage net worthMedian net worth
20s$99,272$6,980
30s$277,788$34,691
40s$713,796$126,881
50s$1,310,775$292,085
60s$1,634,724$454,489
70s$1,588,886$378,018
80s$1,463,756$345,100
90s$1,318,023$315,085

How is net worth calculated?

Net worth is simply everything you own, or your assets, minus everything you owe, or your debts. It is calculated by subtracting what you owe to creditors from what you currently own. Or put another way, it’s the value of your assets after you’ve subtracted all your debts and liabilities.

What makes up your net worth?

Your net worth is the total value of your assets minus your liabilities. Following is a look at what the Federal Reserve Board considers to be assets and liabilities.1

Assets

  • Cash within bank accounts, such as checking, savings, money market accounts, etc.
  • Prepaid debit cards
  • CDs and savings bonds
  • Government bonds
  • Health savings accounts
  • Investment accounts, including 529 college savings plans and individual taxable investment accounts
  • Retirement accounts, including IRAs, 401(k)s, and 403(b)s
  • Life insurance policies with cash value
  • Annuities with equity
  • Value of vehicles including cars, RVs, motorcycles, boats, and helicopters
  • Value of real estate, including rental homes and primary/residential homes

Liabilities

  • Mortgages
  • Home equity lines of credit or home equity loans
  • Credit card balances
  • Installment loans, including personal loans, auto loans, and student loans

Building net worth by age

Remember that building net worth is a gradual process that occurs over the course of a person’s lifetime.

It takes time!

As the data shows, net worth tends to increase over a person’s lifetime until the 60s. At this stage, net worth gradually begins to decrease as income falls during retirement and funds from investment accounts are withdrawn to meet living expenses.

Here are some tips for building net worth during each decade of life:

In your 20s

For many people, the 20s are the time in their life when they are starting their professional lives and possibly a new career. Your earning potential may be somewhat limited, which might make it seem difficult to build net worth during this decade. The key is establishing good financial habits and disciplines that will help you build net worth over the rest of your life, such as setting aside a certain percentage of pay each month to save and invest.

In your 30s

One of the keys to building net worth during this life stage is continuing to prioritize saving and investing. It can be easy for higher earnings to get swallowed up in mortgage and car payments, child-rearing expenses and splurging on a few luxuries like nice vacations and fancy dinners. Instead, it’s important to maintain the saving and investing disciplines that were established in the previous decade and even increase the percentage of income saved.

In your 40s

Growing financial responsibilities can make building net worth especially challenging during the 40s. One way to meet the challenge is to avoid falling into the trap of what’s sometimes referred to as “lifestyle creep.”

As income grows, you may be tempted to try to “keep up with the Joneses” by moving into a bigger home, joining a country club, driving exotic cars or going on expensive vacations. It may be OK to enjoy the fruits of your labor, but keeping expenditures like these in check may go a long way toward building net worth during this life stage.

In your 50s and 60s

The 50s and 60s mark the beginning of the “stretch run” toward retirement for many people. The time window for building net worth during the wealth accumulation stage of your life is starting to shrink as retirement draws closer. Given the shrinking window before retirement, one of the most important net worth-building steps for you in your 50s and 60s may be to max out your retirement accounts. It’s also critical to consider paying down outstanding debt during this time.

In your 70s and beyond

During this life stage, the focus usually shifts to budgeting and portfolio withdrawal. Once you’re a retiree, you can either withdraw a set amount of money each month or withdraw a percentage of the portfolio balance each month. With the first strategy, the amount of income is more predictable, which makes budgeting easier. But you generally have more control over the portfolio’s overall drawdown and potential longevity with the percentage method.

How do you build net worth?

If you are ready to take steps to build your net worth, here are a few ideas to consider:

Go automatic. When your money is automatically transferred into a savings or retirement account each month, you don’t need to think about it. As your income grows over time, increase the amount of money that’s transferred into savings.

Pay down debt, especially high-interest credit card debt. Once you are consumer debt-free, consider paying down your home mortgage if you have one.

Watch your spending. The less money you spend, the more you’ll have to save and build your net worth. For example, cut down on eating out at expensive restaurants, pare back your vacation budget and eliminate streaming services that you rarely use.

The average net worth by age in America (2024)

FAQs

The average net worth by age in America? ›

The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.

What is a good net worth by age USA? ›

Average net worth by age
Age by decadeAverage net worthMedian net worth
20s$99,272$6,980
30s$277,788$34,691
40s$713,796$126,881
50s$1,310,775$292,085
4 more rows

What is the net worth of the top 1%? ›

LOS ANGELES - Recent data from the Federal Reserve reveals that by the end of the fourth quarter of 2023, the wealth amassed by America's wealthiest 1% reached an unprecedented milestone of $44.6 trillion.

What net worth is considered rich in USA? ›

According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy​​​​. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia​​.

What percentage of Americans have a net worth of over $1000000? ›

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

What income is upper middle class? ›

Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range. "The upper middle class has grown...and its composition has changed.

What is considered upper class? ›

Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.

How many people have $2000000 in savings? ›

Among the 47 million households headed by someone age 60 or older, 7% had household investable assets of at least $2 million, Drinkwater said. Only 6% of the 89 million households in the U.S. headed by someone 40 to 85 years old has that amount, Drinkwater said.

Does net worth include home? ›

Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).

What is considered wealthy in retirement? ›

$1 million, $5 million, $10 million

However, if you have $1m, are retired and are living an expensive lifestyle, you might go from wealthy to poor in a relatively short period of time. The Schwab survey found that overall, Americans say they need: $1.9 million to be wealthy in 2021 (down from $2.6 million in 2020)

What is the top 5% net worth? ›

Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.

How many people have $3,000,000 in savings in usa? ›

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

What is considered well off? ›

Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.

How to know if you are rich? ›

How much more than average income would be considered “rich?” One common indicator is being in the nation's “top 1%” of earners. According to the Economic Policy Institute, those include Americans who earn at least $421,926 a year—but their average annual income is far higher: $1,316,985.

How old are most millionaires? ›

Millionaires — those who have a net worth of at least $1 million —are, perhaps not surprisingly, on the older end. They're predominantly 55 and older; just 2.4% are under the age of 35.

Am I considered wealthy? ›

To feel wealthy, Americans say you need a net worth of at least $2.2 million on average, according to financial services company Charles Schwab's annual Modern Wealth Survey.

What should my net worth be based on age and income? ›

The Ideal Number
AgeIncomeNet Worth
20$25,000$50,000
25$35,000$87,500
30$50,000$150,000
50$55,000$275,000
1 more row

Is a net worth of 500k good? ›

The typical American household has a net worth of about $97,300. To be in the richest 20% of the US population, you need a household net worth of nearly $500,000. It can be helpful to see how your net worth compares with others', broken down by age.

Where should I be financially at 35? ›

Overall, the rule of thumb is to judge by your salary. Typically, by the time you enter retirement you want to have 10 times your annual salary saved up in your retirement fund. One common benchmark is to have two times your annual salary in net worth by age 35.

What is considered a high net worth family? ›

A high net worth individual (HNWI) is someone with $1 million or more in investable assets, including cash or cash equivalents. HNWIs may rely on specialized financial services like wealth managers or private banks for money management, estate planning, investment guidance, and tax management.

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