Understanding net worth can be crucial for financial planning, helping individuals set realistic goals for wealth accumulation. In the U.S., net worth varies significantly by age, influenced by factors like income, savings, investments, debt, and homeownership. While some people may accumulate wealth faster due to high earnings or strategic investments, others can struggle with debt and financial setbacks. This blog breaks down median and average net worth by age in America, helping you assess where you may stand financially.
Median and average net worth by age in America
Table of Contents
Key Takeaways
Net worth is calculated by subtracting liabilities from total assets.
Median net worth provides a more accurate representation of financial standing than the average due to wealth disparities.
Increasing savings, reducing debt, and investing wisely can help grow net worth over time.
Regularly reviewing and managing expenses can improve financial stability and contribute to wealth accumulation.
What is net worth?
Net worth represents the difference between what you own (assets) and what you owe (liabilities). Assets may include cash, savings, investments, home equity, and retirement funds, while liabilities can consist of loans, mortgages, and other debts. A positive net worth indicates financial health, whereas a negative net worth suggests more liabilities than assets.
What’s the average American net worth?
The average net worth of an American household varies significantly based on age, income, and financial habits.
As of the Federal Reserve’s 2022 Survey of Consumer Finances (the latest available data as of 2025), the average (mean) net worth of U.S. households is approximately $1.06 million. However, this figure is heavily skewed by the wealthiest households.
To get a better sense of the “typical” household:
- The median net worth—which represents the middle point—stands at $192,700.
- Households led by individuals aged 65 to 74 have a median net worth of around $410,000.
- Those under age 35 typically have a median net worth of about $39,040.
Average vs. Median net worth
When analyzing net worth, both median and average figures can offer insights:
- Median net worth: The middle value when all net worth figures are arranged in ascending order. This eliminates the influence of extreme wealth at the top.
- Average net worth: The sum of all net worth values divided by the total number of people. This figure may be skewed due to ultra-wealthy individuals.
Average and median net worth by age
As of February 2025, the most recent comprehensive data on median and average net worth by age in the United States comes from the Federal Reserve’s 2022 Survey of Consumer Finances, published in October 2023. While more recent data specific to 2025 is not yet available, the 2022 figures provide valuable insights into the financial standing of various age groups up to that point.
Here is a table summarizing the median and average net worth by age group based on the 2022 data (latest official data as of Feb 2025):
| Age | Median Net Worth | Average Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75 and over | $335,600 | $1,624,100 |
Source: Federal Reserve Board’s Survey of Consumer Finances
It’s important to note that these figures can be influenced by various factors, including economic conditions, housing markets, and employment opportunities, which can cause net worth statistics to fluctuate over time. The next iteration of the Survey of Consumer Finances is expected to be conducted in 2025, with results likely published in 2026.
Average net worth at retirement
When looking at the table above, you will see that the average U.S. net worth by age from 65 to 75 and older starts to subtly decline from $1,217,700 to $977,600. As mentioned earlier, when reaching retirement age, the average person’s net worth generally starts to decrease due to individuals withdrawing from their retirement savings.
The 50s and 60s age groups are usually the years when people will start to max out their retirement savings to prepare for retirement and budgeting during the retirement phase. Remember, although these numbers can be overwhelming when thinking about where you fall on the financial scale, looking at the average net worth by age as a metric to use for your personal finances and how you can improve your finances can make it a little less intimidating.
Whether you are a beginner investor or well into planning for your future financially, it’s never too late to learn how to save for retirement or how much you need to retire.
How to calculate net worth?
Calculating your net worth is a straightforward process. Follow these steps:
1. List your assets:
Include all sources of wealth, such as:
- Cash and savings accounts
- Retirement accounts (e.g., 401(k), IRA
- Stocks and bonds
- Real estate properties
- Vehicles
- Valuable personal property (e.g., jewelry, collectibles)
2. List your liabilities:
Add up all debts and financial obligations, including:
- Mortgages
- Car loans
- Student loans
- Credit card balances
- Other outstanding debts
3. Subtract liabilities from assets:
Use the following formula to find your net worth:
Net Worth = Total Assets – Total Liabilities
Example:
If you have $500,000 in assets and $200,000 in liabilities:
Net Worth = $500,000 – $200,000 = $300,000
The resulting figure, $300,000, is called your net worth, which represents the total value of what you own after subtracting what you owe.
Steps for increasing your net worth
Now that we’ve explored median and average net worth figures in the U.S., let’s look at how you can improve your financial standing. Here are some key steps:
1. Maximize retirement savings
Contributing to a retirement plan, such as a 401(k) or an IRA, is a fundamental step in building wealth. Whether you have an employer-based retirement plan or an individual 401(k), prioritizing contributions can not only prepare you for retirement but also improve your overall net worth over time.
2. Create a debt payoff strategy
Paying off debt can be challenging, but developing a structured repayment plan can help you reduce liabilities and free up cash for investments and savings. Consider prioritizing high-interest debts first to minimize financial strain.
3. Learn how to invest
Although investing involves risks, it is one of the most effective ways to grow wealth over time. Speaking with a financial advisor and developing a long-term investment strategy can enhance your financial stability and contribute to net worth growth.
4. Set up a high-yield savings account
A traditional savings account may not yield much interest, but opening a high-yield savings account can help you earn more on your money. Consistently setting aside funds and choosing the right savings vehicle can help build long-term financial security.
5. Increase your income
Advancing your career and developing new skills can lead to higher earning potential. Negotiating for a salary increase or exploring additional income streams, such as freelance work or side businesses, can accelerate your net worth growth.
6. Manage and organize expenses
Reviewing your financial habits and cutting unnecessary expenses can help you allocate more funds toward savings and investments. Periodically evaluating your budget ensures that you stay on track and make informed spending decisions.
The bottom line
Understanding median and average net worth by age can provide a benchmark to assess financial progress. While averages can be skewed by wealthier individuals, median figures offer a clearer picture of where most people stand. Regardless of your age, taking proactive steps to save, invest, and manage debt can improve financial security over time. By making informed financial decisions, you may increase your net worth and secure a more stable future.
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