Net Worth by Age: Are You On Track?
Quick Answer
Are you on track? The median net worth for Americans under 35 is $39,000, rising to $409,900 for ages 65-74. If your net worth is above the median for your age group, you're doing better than half of Americans. Below median doesn't mean failure - it means opportunity for growth.
Key insight: Homeownership is the biggest factor - homeowners have 40x higher median net worth than renters ($255,000 vs $6,300).
2026 Net Worth Benchmarks by Age
The Federal Reserve's Survey of Consumer Finances (SCF) provides the most comprehensive data on American household wealth. Here are the latest benchmarks:
| Age Group | Median Net Worth | Average Net Worth | Gap Factor |
|---|---|---|---|
| Under 35 | $39,000 | $183,500 | 4.7x |
| 35-44 | $135,600 | $549,600 | 4.1x |
| 45-54 | $247,200 | $975,800 | 3.9x |
| 55-64 | $364,500 | $1,566,900 | 4.3x |
| 65-74 | $409,900 | $1,794,600 | 4.4x |
| 75+ | $335,600 | $1,624,100 | 4.8x |
Source: Federal Reserve Survey of Consumer Finances (2022)
Why the 75+ median drops: Many retirees are spending down their savings, healthcare costs increase, and some transfer wealth to children. This is expected and doesn't indicate financial distress for most.
Why Median Matters More Than Average
You'll notice the average is 4-5x higher than the median. This isn't a typo - it reveals something important about wealth distribution in America.
The Billionaire Effect
Imagine a room with 10 people:
- 9 people have net worth of $50,000 each
- 1 person (a billionaire) has net worth of $10,000,000
Average (mean): $1,045,000
Median (middle): $50,000
Which number better represents the "typical" person in that room? The median, of course. The average is skewed by the outlier.
Takeaway: When comparing your net worth, use the median as your benchmark. The average includes billionaires like Bezos and Musk, making it unrealistically high for comparison.
Net Worth Percentiles: Where Do You Rank?
Percentiles show where you stand compared to all Americans your age. Here's what each percentile means:
- 25th percentile: 75% of people have more than you
- 50th percentile (median): You're right in the middle
- 75th percentile: You have more than 75% of people
- 90th percentile: You're in the top 10%
| Age Group | 25th %ile | 50th (Median) | 75th %ile | 90th %ile |
|---|---|---|---|---|
| Under 35 | $1,000 | $39,000 | $133,000 | $367,000 |
| 35-44 | $17,500 | $135,600 | $420,000 | $1,030,000 |
| 45-54 | $36,000 | $247,200 | $725,000 | $1,800,000 |
| 55-64 | $54,000 | $364,500 | $1,050,000 | $2,650,000 |
| 65-74 | $80,000 | $409,900 | $1,180,000 | $3,100,000 |
| 75+ | $65,000 | $335,600 | $960,000 | $2,400,000 |
How to use this: If you're 40 with $200,000 net worth, you're above the median ($135,600) but below the 75th percentile ($420,000). You're doing better than most, but there's room to grow toward the top quarter.
What's Included in Net Worth
Net worth is simple: Assets - Liabilities = Net Worth. Here's exactly what to count:
Assets to Count
- Cash and bank accounts: Checking, savings, money market
- Retirement accounts: 401(k), IRA, Roth IRA, pension value
- Investment accounts: Brokerage, mutual funds, stocks, bonds
- Real estate: Home market value, rental properties, land
- Vehicles: Cars, motorcycles, boats (current resale value)
- Business equity: Your ownership stake in any business
- Other assets: Valuable jewelry, collectibles, life insurance cash value
Liabilities to Subtract
- Mortgage balance: Remaining balance, not original loan amount
- Auto loans: Current balance on all vehicle loans
- Student loans: Federal and private loan balances
- Credit card debt: All outstanding balances
- Personal loans: Any other borrowed money
- Other debts: Medical debt, family loans, etc.
Don't forget: Use current values, not purchase prices. Your car isn't worth what you paid - check Kelley Blue Book. Your home value may have changed significantly since purchase.
Key Factors That Affect Net Worth
Age isn't the only factor. These variables have enormous impact on net worth:
Homeownership: The 40x Multiplier
The single biggest factor in net worth is homeownership:
- Homeowners median: $255,000
- Renters median: $6,300
- Difference: 40x higher
This doesn't mean you should rush to buy a home - it reflects that homeowners tend to be older, have higher incomes, and build equity over time. But it shows why home equity is often the largest asset for middle-class Americans.
Education Level
College graduates have 3-4x higher median net worth than those without degrees. This gap widens with age as higher earnings compound over time.
Income vs. Savings Rate
Surprisingly, your savings rate matters more than your income. A teacher saving 25% of $60,000 will build more wealth than a doctor saving 5% of $300,000 (assuming similar investment returns).
Other Factors
- Marital status: Married couples have ~2x higher median net worth (combined incomes, shared expenses)
- Geographic location: High cost-of-living areas make saving harder
- Inheritance: About 20% of household wealth comes from inherited assets
- Starting age: Starting to invest at 25 vs. 35 can mean hundreds of thousands more by retirement
Net Worth by Decade: What to Focus On
Each life stage has different priorities for building wealth. Here's what to focus on:
In Your 20s: Build the Foundation
Target: Reach median of $39,000 by age 35
- Emergency fund first: 3-6 months of expenses before aggressive investing
- Get the 401(k) match: Never leave free money on the table - contribute at least enough to get employer match
- Avoid lifestyle creep: When you get a raise, save at least half of it
- Student loan strategy: Focus on high-interest debt (above 6-7%) first
- Build credit: Good credit saves thousands on future loans
In Your 30s: Acceleration Phase
Target: Reach median of $135,600 by age 45
- Max retirement contributions: $23,000 for 401(k) in 2024 if possible
- First home consideration: Build equity, but don't overextend
- Career income growth: This is prime time for job changes and promotions
- Avoid the car trap: New car loans destroy wealth - buy used or keep cars longer
- Start taxable investing: After maxing retirement accounts
In Your 40s: Peak Earning Years
Target: Reach median of $247,200 by age 55
- Mortgage paydown: Consider extra principal payments to build equity faster
- Diversification: Spread investments across asset classes
- College savings balance: Don't sacrifice retirement for kids' college
- Insurance optimization: Review life, disability, and umbrella coverage
- Side income: Consider passive income streams
In Your 50s: Pre-Retirement
Target: Reach median of $364,500 by age 65
- Catch-up contributions: Extra $7,500 allowed for 401(k) after age 50
- Debt elimination: Enter retirement debt-free if possible
- Retirement number: Calculate exactly how much you need
- Downsizing consideration: Unlock home equity if appropriate
- Healthcare planning: Research Medicare and supplemental options
In Your 60s+: Preservation and Income
Target: Maintain wealth while generating retirement income
- Social Security optimization: Delaying to 70 increases benefits by 8%/year
- RMD planning: Required minimum distributions start at age 73
- Withdrawal strategy: The 4% rule is a starting point, not a law
- Estate planning: Update wills, trusts, beneficiaries
- Healthcare costs: Plan for potential long-term care needs
I'm Behind - Now What?
If you're below the median for your age, don't panic. It's never too late to improve your financial position.
The Power of Compound Growth
Even starting late, consistent saving creates significant wealth:
| Starting Age | Monthly Savings | At Age 65 |
|---|---|---|
| 25 | $500 | $1,200,000+ |
| 35 | $500 | $590,000 |
| 40 | $1,000 | $715,000 |
| 50 | $1,500 | $395,000 |
Assumes 7% average annual return, compounded monthly
Focus on Savings Rate Over Income
You can't always control your income, but you can control what you keep. Increasing your savings rate from 10% to 20% effectively doubles your wealth-building speed.
Debt Elimination IS Wealth Building
Paying off a $10,000 credit card at 20% APR is equivalent to earning a guaranteed 20% return. That beats any investment. Focus on high-interest debt first.
Catch-up strategies: (1) Eliminate high-interest debt aggressively; (2) Increase savings with every raise; (3) Consider a side income; (4) Reduce housing costs if possible; (5) Use catch-up contributions after 50.
Common Mistakes That Derail Net Worth
Avoiding these pitfalls can be as important as making good decisions:
Lifestyle Inflation
Every time you get a raise, your expenses increase to match. This is the #1 wealth killer for high earners. Someone earning $200,000 who spends $195,000 is worse off than someone earning $60,000 who spends $45,000.
Ignoring High-Interest Debt
Carrying credit card balances at 20%+ APR while investing for 7-10% returns is mathematically backward. Pay off high-interest debt first.
No Emergency Fund
Without 3-6 months of expenses saved, every emergency becomes debt or forces you to sell investments at bad times.
Over-Spending on Housing
The "30% of income on housing" rule is a maximum, not a target. Every dollar under that limit can go toward wealth building.
The Car Debt Cycle
Trading in cars with negative equity, constantly financing depreciating assets, and chasing new models can destroy hundreds of thousands in potential net worth over a lifetime.
Comparing to Social Media
Instagram shows highlight reels, not balance sheets. Many people showing off luxury goods have negative net worth. Focus on your own progress, not others' appearances.
The silent killer: Not investing early. Someone who invests $200/month from age 25-35 and then stops ($24,000 total) will have more at 65 than someone who invests $200/month from age 35-65 ($72,000 total). Time in the market beats timing the market.
Frequently Asked Questions
What is a good net worth for my age?
A "good" net worth is typically above the median for your age group. For under 35, that's above $39,000. For ages 35-44, above $135,600. For ages 45-54, above $247,200. For ages 55-64, above $364,500. For ages 65-74, above $409,900. However, "good" depends on your income, location, and financial goals. If you're above the 50th percentile, you're doing better than half of Americans your age.
Should I include my house in my net worth?
Yes, include your home's current market value as an asset and your remaining mortgage balance as a liability. Your home equity (value minus mortgage) is part of your net worth. However, some people also track "liquid net worth" separately, which excludes home equity since you can't easily spend it without selling your house.
How often should I calculate my net worth?
Most financial experts recommend calculating your net worth monthly or quarterly. This frequency helps you track progress, identify trends, and stay motivated. Many people update their net worth on the same schedule as reviewing their budget or investment portfolio - often the first of each month or quarter.
Is negative net worth bad?
Negative net worth is common, especially for young adults with student loans or recent home buyers with large mortgages. It's not necessarily bad if it's temporary and you have a plan to improve it. The concern is when net worth stays negative or worsens over time. Focus on paying down debt while building assets gradually.
How can I increase my net worth quickly?
The fastest ways to increase net worth are: (1) Pay off high-interest debt - eliminating a $10,000 credit card balance immediately adds $10,000 to your net worth; (2) Increase your savings rate - even 5% more can make a huge difference; (3) Negotiate a raise or find higher-paying work; (4) Reduce major expenses like housing and transportation; (5) Start investing early to benefit from compound growth.
Your Next Steps
- Calculate your current net worth - Use our calculator to get an accurate picture
- Identify your biggest lever - Is it debt payoff, increasing income, or reducing expenses?
- Set a 12-month goal - Aim for 10-15% net worth growth as a starting target
- Track monthly or quarterly - Consistent tracking drives better results
- Automate your savings - Set up automatic transfers to make saving effortless
Ready to see where you stand? Calculate your net worth in minutes with our free calculator.
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