Average net worth by age: How do you compare?

Ever thought about what your net worth should be? Most people aim for a high figure, regardless of age. But determining what a “normal” net worth is for your life stage can be challenging.

Your net worth is calculated by subtracting your liabilities (debts like mortgages, credit cards, and loans) from your assets (money in bank accounts, investments, home equity, etc.). While net worth is just one aspect of your financial health, it can serve as a good indicator of your overall financial well-being.

Understanding your net worth is crucial if you have plans to start a business, take out a large loan, or prepare for retirement. If you feel like you’re lagging behind in achieving a high net worth, knowing the average assets and debts for individuals your age can be a helpful starting point. This knowledge can then guide you in determining the best approach to reach your desired net worth.

Average net worth in the U.S. by age

Net worth typically increases over time as assets like homes, retirement accounts, and investments appreciate, and debts are paid off.

While common financial guidelines suggest saving at least a year’s income by age 30 and ten times your income by age 67, the national median net worth indicates that most people fall short of these targets.

The median household income in the U.S. is $74,580, according to the Bureau of Labor Statistics (BLS). Ideally, Americans should have saved $745,800 by retirement. However, the median net worth for Americans aged 65-74 was only $410,000 in 2023, as per the BLS’ Survey of Consumer Finances.

Continue reading to discover the typical net worth for individuals in your age group, whether you’re just starting your career or planning for retirement.

Younger than age 35

Source: BLS’s Survey of Consumer Finances, 2023

Before turning 35, the average American has the lowest net worth among all adult age groups. Homeownership tends to be the primary contributor to net worth, and in 2023, only 43% of homeowners were aged 25-34, as per the BLS.

For younger Americans, a significant portion of their net worth likely comes from retirement accounts, with those under 35 having a median of $18,880 in such accounts in 2023.

Despite being the least wealthy age group overall, individuals under 35 saw their average net worth more than double between 2019 and 2023, from $16,230 to $39,040, according to the BLS.

Ages 35-44

Source: BLS’s Survey of Consumer Finances, 2023

Individuals in the 35-44 age group, about a decade into their careers, may start considering major life changes like starting a family or a business. Many in this age bracket are also likely paying off student loans or credit card debts.

As of 2023, 62% of people aged 35-44 own a home, contributing to a median net worth more than three times that of younger adults.

In addition, Americans in this age range had a median of $45,000 in retirement accounts in 2023. While the group has seen a slight increase in average wealth since 2019, from $105,610 to $135,300 in 2023, the growth has been modest.

Ages 45-54

Source: BLS’s Survey of Consumer Finances, 2023

By their late 40s, many individuals have likely achieved higher career earnings. At this stage, they may be supporting older children through college or trade school and may also be increasing spending on healthcare.

Many adults aged 45-54 have diversified their investments, leading to a growth in net worth. With a median income of $91,880 in 2023, the highest among all age groups, these individuals had a median of $115,000 in retirement accounts.

Between 2019 and 2023, this demographic experienced a 23% increase in net worth, rising from a median of $195,670 to $246,700, according to the BLS.

Do I need a financial advisor?

As you approach your late 40s, you may be considering whether to hire a financial advisor to manage your investments. Bankrate’s guide can help you determine the role of financial advisors and whether you need one.

Ages 55-64

Source: BLS’s Survey of Consumer Finances, 2023

Individuals aged 55-64 are approaching their final working years before retirement at 65, although many may continue working. As of 2023, over 11 million adults aged 65 and older were either working or actively seeking employment, according to the U.S. Department of Health and Human Services’ Administration for Community Living.

While their salaries may not be at their peak, those in the 55-64 age group had a median income of $82,150 in 2023, the highest among all age brackets. Investments made earlier in their careers are starting to yield significant returns, with a $100 investment in the S&P 500 in 1990 now worth around $3,220 in 2024, according to the Data Foundation.

Individuals in this age group had a median of $185,000 in retirement accounts in 2023, according to the BLS.

Ages 65-74

Source: BLS’s Survey of Consumer Finances, 2023

Individuals aged 65-74, either nearing retirement or already retired, have the highest net worth of any age group. This is due to the long-term appreciation of assets and potential mortgage payoff. The majority (77%) of individuals aged 65 and older own their homes, according to the BLS, and they have a median of $200,000 in retirement accounts.

Between 2019 and 2023, individuals in this age bracket saw their average net worth rise from $308,430 to $410,000.

Age 75 and older

Source: BLS’s Survey of Consumer Finances, 2023

Individuals aged 75 and older are typically retired, with a median income of $49,070 in 2023. As retirees, they may be drawing on their savings, which can reduce their net worth. In 2023, people aged 75 and older reported a median of $130,000 in retirement accounts.

The median net worth for this group was $295,480 in 2019 and $334,700 in 2023.

At a glance: Median net worth trends in the U.S.

American families’ real median net worth rose from $141,140 in 2019 to $192,700 in 2023, a 37% increase, according to the BLS.

The median American net worth declined during the Great Recession period from 2007 to 2010 but has been steadily increasing since:

Net worth of U.S. families, 2007-2023

Source: BLS’s Survey of Consumer Finances, 2023

Bottom line

If you feel like you’re falling short on building your net worth, don’t fret. Your net worth is just one aspect of your financial health. The mean and median net worth figures provided are not mandatory for a comfortable retirement and may not be feasible for everyone, especially considering inflation’s impact on savings. Each retirement plan is unique, and financial goals vary from person to person.

If you’re looking to increase your net worth, focus on paying off high-interest debts and boosting your savings and retirement contributions. These steps not only contribute to higher net worth but also bring you closer to financial independence.