There are two ways to look at your net worth by age. The first is to measure your wealth against the median wealth of your age group and peers. This can be modestly helpful as a benchmark, but by and large it tells you nothing about your own needs.
The far more helpful approach is to consider your own financial goals. What do you need to build the life you want, and to afford your own lifestyle in retirement?
At age 35, you still have a lot of flexibility in your net worth. Unlike many other age groups, there really isn’t a “should” for people in their 20’s and mid-30s, and you can even afford a comfortable retirement if you have nothing saved up at all. Talk to a financial advisor to start making a personalized financial plan.
Median Net Worth
We can use the median household as a benchmark for measuring net worth.
U.S. Census Bureau data uses age 35 a hinge. For households 35 and under, the median net worth is about $22,000 according to the most recent data from the .Households age 35-44 have a median net worth of about $97,740. While this data doesn’t necessarily reflect what someone might have in a specific year, it does suggest that either or both the power of compound interest and career progression have a large impact on net worth over time.
This means starting to implement healthy financial strategies today can have an outsized return for your future.
Compare Your Net Worth to Your Goals
Again, median numbers may not be particularly helpful for your personal circ*mstances. For example, a doctor who couldn’t even enter practice until age 28 with $200,000 in debt may have a net worth still in the red at 35, but he can more than likely overcompensate in the long run thanks to his compensation.
The point is, you should measure your net worth by your own, individual situation. What your net worth should be depends entirely on what you have and what you, personally, need.
When it comes to retirement, the net worth that you should have at age 35 depends on the retirement you want to afford. The more money you will want at age 67, the more money you need to have at age 35. There are a number of ways to measure this.
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.
So, for example, say that you earn the U.S. median income of $74,500.This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings. This will keep you on track with ordinary benchmarks.
However, you can also judge this by doing the math on what you need to save each month to reach your goals. In that case, your benchmarks can be much lower. In fact, your net worth at age 35 can be nothing at all.
Say that you are looking to save the benchmark $740,500. You contribute 10% of your income each month to your retirement account, for an annual contribution of $7,450 per year. You have this money held in an S&P 500 index fund earning the market’s historic average of 10% annual returns. You are 35 years old with nothing saved at all and you intend to retire at full retirement age of 67.
Based on this profile, you will have $1.79 million by the time you retire.This is not only more than you need, it is plenty of money to afford a very comfortable retirement.Talk to a financial advisor today to build a plan to grow your net worth.
Bottom Line
Your net worth by age 35 will help you continue saving for your future. What you should have on hand depends entirely on your personal financial goals, but at this age there is still a lot of room for flexibility.
Retirement Savings Tips
- The best way to make plans is with specific numbers. Use SmartAsset’s retirement calculator to figure out what you need and how you can plan your savings to reach your own retirement goals.
- A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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FAQs
One common benchmark is to have two times your annual salary in net worth by age 35. So, for example, say that you earn the U.S. median income of $74,500. This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings.
What is a good net worth for 35 year old? ›
What do the top quartiles look like?
| Age Range | 75th Percentile Net Worth |
|---|
| Under 35 | $153,000 |
| 35-44 | $415,000 |
| 45-54 | $800,000 |
| 55-64 | $1.122 million |
2 more rowsDec 27, 2023
Savings Benchmarks by Age—As a Multiple of Income
| Investor's Age | Savings Benchmarks |
|---|
| 30 | 0.5x of salary saved today |
| 35 | 1x to 1.5x salary saved today |
| 40 | 1.5x to 2.5x salary saved today |
| 45 | 2.5x to 4x salary saved today |
4 more rowsYou can use this to assess whether you need to catch up on your retirement savings: At age 35, you should have saved the equivalent of your annual income. At age 40, 2.1 times your annual income. At age 50, 4.6 times your annual income.
What is the average net worth without home equity? ›
In 2021, the median net worth of U.S. households overall stood at $166,900, counting all assets. But their median net worth without home equity included was only $57,900. This is generally true – if home equity is excluded, median wealth decreases by about half or more for all racial and ethnic groups.
What is the net worth of the top 5% in the US? ›
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.
What is the net worth of the upper middle class? ›
Some sources define the upper middle class as anyone making a lot of money but haven't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
What is the average Social Security check? ›
Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
How much should I have in my 401k at 35? ›
However, the general rule of thumb, according to Fidelity Investments, is that you should aim to save at least the equivalent of your salary by age 30, three times your salary by age 40, six times by age 50, eight times by 60 and 10 times by 67.
How many people have $1000000 in savings? ›
In fact, statistically, around 10% of retirees have $1 million or more in savings.
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 should my finances look like at 35? ›
Fidelity says that by age 30, you should aim to have the equivalent of your annual salary in a retirement plan. By age 40, you should have three times your salary. So by age 35, your goal should be to have 1.5 times your salary socked away.
How much money does the average American have at 35? ›
Savings by Age
| Age | Average Account Balance | Median Account Balance |
|---|
| Under 35 | $11,250 | $3,240 |
| 35 to 44 | $27,910 | $4,710 |
| 45 to 54 | $48,200 | $6,400 |
| 55 to 64 | $57,670 | $5,620 |
2 more rowsSep 19, 2023
According to Federal Reserve data, here's how the latest net worth numbers break down by class in America: Lower class (lowest 20%): $14,000 or less. Lower-middle class (20% to 40% range): $14,001-$71,000.
What net worth is considered rich? ›
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.
Do you include house in net worth? ›
However, one measure that many overlook is net worth. Your net worth represents how much wealth you have, measured by assets like a house, cars, 401(k), jewelry or cash in the bank, minus the debt obligations you have, or what you owe.
What percent of 35 year olds are millionaires? ›
Slightly over 20% of families aged 55-74 have net worths above $1 million, while well over 10% of those aged 45-54 and 75 and over millionaires, according to the Fed. Meanwhile, just 1% of those under 35 are millionaires.
What is a good net worth in your 30s? ›
The net worth you should be aiming for in your 30s is between $25,000 and $100,000, according to Crissi Cole, founder and CEO of Penny Finance.
Is $3 million enough to retire at 40? ›
Depending on your goals and plans, $3 million can be enough to cover early retirement at 40. However, certain factors will affect whether $3 million is enough. For example, your retirement needs and life expectancy play a big role. Here's how to invest it to cover healthcare, housing and lifestyle.
What is the top 1% net worth for age 36? ›
What is the top 1% household net worth by age?
| Age | Top 1% Net Worth |
|---|
| 18-24 | $653,224 |
| 25-29 | $2,121,910 |
| 30-34 | $2,636,882 |
| 35-39 | $4,741,320 |
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