Net Worth

Average Net Worth by Age: Where Do You Stand?

Compare your financial position to others your age using Federal Reserve data, plus strategies to catch up if needed.

Updated January 2025 10 min read

"Am I doing okay financially?" It's the question everyone asks but nobody wants to discuss. Let's look at the data to see where you stand - and more importantly, what to do about it.

What is Net Worth?

Your net worth is simple: what you own minus what you owe.

Assets

What You Own

Cash, investments, home, car, etc.

Liabilities

What You Owe

Mortgage, loans, credit cards, etc.

=

Your Net Worth

Average vs. Median: Why It Matters

Before we look at the numbers, understand this crucial distinction:

Average (Mean)

All values added up and divided by count.

Problem: Billionaires skew this number way up. It's not representative of typical Americans.

Median (Middle)

The middle value when all values are lined up.

Better: This shows what the "typical" person actually has. Use this for comparison.

Net Worth by Age (Federal Reserve Data)

This data comes from the Federal Reserve's Survey of Consumer Finances (2022, most recent available):

Age Group Average Net Worth Median Net Worth
Under 35 $183,500 $39,040
35-44 $549,600 $135,600
45-54 $975,800 $247,200
55-64 $1,566,900 $364,500
65-74 $1,794,600 $409,900
75+ $1,624,100 $335,600

Notice the Gap:

The average is 3-5x higher than the median in every age group. This shows how much high earners skew the data. Focus on the median column for a realistic comparison.

What the Medians Mean

Under 35: Median $39,040

Half of Americans under 35 have less than $40K net worth. Many have negative net worth (student loans). If you're above this, you're ahead of the pack.

35-44: Median $135,600

The wealth-building years begin. Home equity often becomes a major factor. Career earnings typically peak in this decade.

45-54: Median $247,200

Prime earning and saving years. Kids' college expenses can impact growth. Retirement planning becomes urgent.

55-64: Median $364,500

Final push before retirement. Many are playing catch-up. This is typically the highest net worth decade.

65+: Median $335,600-$409,900

Net worth often plateaus or decreases as retirement spending begins. Home equity is often the largest asset.

The "You Should Have Saved" Rules

Financial advisors have created various rules of thumb. Here are the most common:

Fidelity's Retirement Savings Guidelines:

By age 30: 1x your salary saved
By age 40: 3x your salary saved
By age 50: 6x your salary saved
By age 60: 8x your salary saved
By age 67: 10x your salary saved

Note: This is for retirement savings only, not total net worth.

If You're Behind: Don't Panic

Most Americans are "behind" by traditional benchmarks. Here's how to catch up:

In Your 20s-30s (Behind on Retirement)

  • Max out employer 401(k) match - It's free money. Not doing this is leaving salary on the table.
  • Open a Roth IRA - Contribute $7,000/year max. Tax-free growth for decades.
  • Pay off high-interest debt - Credit cards at 20%+ cost you more than investing earns.
  • Build emergency fund - $5-10K prevents debt spirals when life happens.

In Your 40s (Need to Accelerate)

  • Max out 401(k) - $23,500/year limit in 2025. Do the full amount if possible.
  • Avoid lifestyle inflation - Raises should go to savings, not bigger house/car.
  • Consider a side hustle - Extra $10K/year invested now = $50K+ at retirement.
  • Review investment allocation - Make sure you're not too conservative (or aggressive).

In Your 50s+ (Catch-Up Mode)

  • Use catch-up contributions - Extra $7,500 allowed in 401(k) if 50+. Extra $1,000 in IRA.
  • Delay Social Security if possible - Waiting until 70 increases benefits by ~8%/year.
  • Consider working longer - Even 2-3 extra years dramatically improves retirement math.
  • Pay off mortgage before retirement - Reduces required monthly income significantly.

Net Worth Isn't Everything

Remember these important caveats:

Calculate Your Net Worth

Ready to see where you actually stand? Our net worth calculator helps you add up all your assets and liabilities in minutes.

Calculate Your Net Worth Now

Track your assets, liabilities, and see your complete financial picture.

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Frequently Asked Questions

Should I include my car in net worth?

Yes, but be realistic about its value. Use Kelley Blue Book trade-in value, not private sale. Cars depreciate quickly and shouldn't be a major part of your net worth.

Does my home count toward net worth?

Yes. Include your home's current market value as an asset and your mortgage balance as a liability. The difference (equity) is your contribution to net worth.

What if my net worth is negative?

You're not alone - many young adults have negative net worth due to student loans. Focus on paying down debt and avoiding new debt. Your net worth will grow as you chip away at loans.

How often should I calculate my net worth?

Quarterly or twice a year is plenty. More often and you'll stress over normal market fluctuations. The trend over years is what matters, not month-to-month changes.

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