Before we look at average net worth by age, let me start by saying that there are pros and cons to even tracking your own net worth. And, while understanding where you stand as compared to averages can be a useful benchmark, it can also be a futile exercise that focuses you are the wrong thing.
The Benefits and Pitfalls of Benchmarking Your Net Worth Against Averages
Benchmarking your net worth against averages can provide helpful context for understanding your financial position. It allows you to gauge whether you’re generally on 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 benchmarks has pitfalls. Averages don’t account for individual circumstances, such as cost of living, career paths, or unique financial goals. They may make you feel unnecessarily discouraged if you’re below average, or overly confident if you’re above, even if your financial habits need improvement. (NOTE: Too often people with a lot of money, spend a lot of money and are not truly building wealth.)
So many retirement articles suggest that you need $1 million to retire. But, it just isn’t true for the majority of people. If you have low expenses and reliable income, then much less savings are needed and a lower net worth is perfectly fine.
TIP: Instead of comparing yourself to others, it’s often better to focus on your personal progress and how your net worth aligns with your goals and life situation. (Use the Boldin Planner to manage a holistic financial plan for the life you want.)
Average Net Worth for All Households in the United States
Now that you have perspective on benchmarking yourself against average net worths, let’s take a look at the numbers. According to the most recent Survey of Consumer Finances (SCF) from the Federal Reserve:
- The average net worth of all Americans is $1,059,470
- The median is $192,700 (This is the more realistic and meaningful number.)
Yes. There is a big difference between the average and the median. As a reminder:
- Mean is another way of saying average. You get an average by adding up all the numbers, then dividing by how many numbers there are. The mean can be skewed up by really big and really small numbers.
- Average net worth may seem high because of handfuls of very wealthy people. It is a less meaningful way of benchmarking your own situation.
- Median is the middle number when the numbers are lined up in order.
- Median net worth is more representative of the financial reality of the majority of households.
The mean can be skewed by really big or small numbers, but the median shows the center of the data more reliably when there are outliers.
Net Worth by Age
Net Worth of People in their 20s
It shouldn’t be surprising that median net worth is low at this age. However, the more young people can save, the more they can benefit from the magic of compound interest.
Age range 20-24
- Average net worth: $120,896
- Median net worth: $10,800
Age range 25-29
- Average net worth: $120,185
- Median net worth: $30,160
Net Worth of People in their 30s
As people in their 30s begin to buy homes and increase earnings, the median net worth begins to really grow.
Age range 30-34
- Average net worth: $258,073
- Median net worth: $89,801
Age range 35-39
- Average net worth: $501,289
- Median net worth: $141,200
Net Worth of People in their 40s
It is interesting to note that the median net worth actually drops from $141,200 for 35-39 year olds to that for 40-44 year olds. It could be due to the competing priorities of mid life.
Age range 40-44
- Average net worth: $590,718
- Median net worth: $134,730
Age range 45-49
- Average net worth: $781,923
- Median net worth: $212,800
Net Worth of People in their 50s
Your fifties is the time to get serious about your future and determine if your current financial situation is optimized for retirement. As you can see the median net worth of people at this age is pretty far off the mark for what most “experts” say is needed for a secure future.
Age range 50-54
- Average net worth: $1,132,532
- Median net worth: $272,800
Age range 55-59
- Average net worth: $1,442,075
- Median net worth: $320,700
Net Worth of People in their 60s
As you can see, there is decent growth in median net worth from the 50s into the 60s, although it is much less than what you might think. This doesn’t mean that the majority of people are retiring into poverty, although retiring on Social Security alone is a thing.
Age range 60-64
- Average net worth: $1,675,214
- Median net worth: $394,010
Age range 65-69
- Average net worth: $1,836,884
- Median 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 in early retirement. (See how to increase wealth after retirement.)
However, healthcare costs become more of a factor as you age and will play a big part of net worth for people in their seventies and beyond.
Age range 70-74
- Average net worth: $1,714,085
- Median net worth: $433,100
Age range 75-80
- Average net worth: $1,630,969
- Median net worth: $316,000
What is the Average Net Worth of a Boldin Subscriber?
The average net worth of a Boldin subscriber is just over $3 million.
It should be no surprise that Boldin subscribers are in the top 5%. It isn’t just saving and investing that grows net worth. Building and maintaining a financial plan enables you to make better financial decisions and focus on your goals. Measuring what matters and improving performance is a tactic that works.
How to Track Your Net Worth (and Other Important Financial Metrics)
When you build and maintain a holistic financial plan with the Boldin Retirement Planner you can track a range of financial wellness metrics, develop positive financial habits, make stronger financial decisions, and stay on track to the future you want.
Net Worth Tracking: The Boldin Retirement Planner is enhancing our net worth tracking. 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 will be developing more historic tracking over the next quarters.
Financial Wellness Score: More important than your net worth may be your Financial Wellness Score, an assessment of how you are doing against 15+ important metrics related to your money. This score paints a more personalized picture of how you are doing and includes your Chance of Retirement Success, next month’s cash flow, and more.
Dozens of Other Insights: The software is full of charts, coach alerts, explorers, and other features to help you see where you stand. And, more importantly, assess what you need to do to live the life you want.
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