There is one constant that does not change no matter what age you are. A person can start saving money for the future at any time.
There are numerous variables that might affect your financial situation, and your age is just one of them. It’s crucial to your financial plan to know how long it will be until you achieve major milestones like retirement. But if you haven’t begun, if you need to pause, or if you find yourself falling behind, don’t give up! Always remember that restarting is an option.
Understanding your net worth will help you maintain a realistic perspective on your financial situation. In this context, “average net worth by age” means the total wealth of American households divided by the total number of American households. Because a household can contain one person or several, it is the household that is often used in metrics rather than the individual.
It’s common for a person’s net worth to rise as they get older, whether because of an increase in income, a rise in asset value, or a decrease in debt. In this article, we’ll examine how wealth differs across generations in the United States. Talking to a financial advisor is a good idea if you want additional information about your net worth. You may find local financial advisors who work with SmartAsset’s free advisor matching tool.
One more step is added to the same process for figuring out how much the ordinary American is worth. The population’s total household debt is subtracted from their total household assets. The average net worth of a U.S. family is calculated by taking the total wealth of all American families and dividing it by the number of families in the country.
When estimating the median wealth of Americans, it’s critical to account for the wide gap in wealth that exists between the country’s richest and poorest citizens. In 2019, the Federal Reserve revealed the results of its last Survey of Consumer Finance, which was performed in 2018. That poll indicated that the richest 10% of families own 70% of all wealth in the United States, while the top 50% of all households own 98% of all wealth. This means that an average overall net worth in the United States would be skewed higher. The typical American family has a net worth of roughly $748,800 if this isn’t taken into account.
The median wealth of a country’s population can give a good indication of the average wealth of its citizens. Whether the data are sorted by increasing or decreasing value, the median always remains the same. If you were to compile a list of every household’s wealth in the United States, you’d find that the median wealth is $121,700. The wide gap between the average and median net worth in the United States is indicative of the wide income distribution gap.
Wealth Distribution by Age
Age is associated with a rise in wealth. Increasing levels of education, inheritances, salaries, salaries relative to housing costs, family composition, race/ethnicity, socioeconomic status, and homeownership all play a role. This is by no means an exhaustive list. Average and median net worth is provided for each age group in the 2019 Federal Reserve Survey of Consumer Confidence.
| Age group | Average savings balance |
|---|---|
| Under 35 | $11,200 |
| 35-44 | $27,900 |
| 45-54 | $48,200 |
| 55-64 | $57,800 |
| 65-74 | $60,400 |
| 75+ | $55,600 |
Young Adulthood
Between the ages of 18 and 24, young adults have an average net worth of $28,707 and a median net worth of $8,216. The distribution of wealth remains highly lopsided, even among those of this age. Between the ages of 25 and 29, the average salary is $49,388, and the median is much lower at $7,512.
The average wealth for those aged 30 to 34 is $122,700, with the median at $35,112. The average income for those 35–39 years old is $274,112, with a median of $55,519.
Late Antiquity
The median wealth of those between the ages of 40 and 44 is $127,345, while the average wealth is $623,694. Between the ages of 45 and 49, average earnings are $761,500, and median earnings are $164,197.
The average net worth of those aged 50–54 is $897,663, with the median net worth sitting at $171,360. The difference between the two is $600,000 between 55 and 59 and $1,165,477 between 60 and 64.
Senior
Age 60–64 has the highest average net worth, at $1,187,730, with the median at $228,833. Between the ages of 65 and 69, the typical salary is $1,250,679, with a median of $271,805.
When people reach their 70s, they start to see a decline in their net worth on average, albeit the median may not always fall at the same rate. Between the ages of 70 and 74, the average salary is $1,173,653, and the median salary is $258,531. A person’s net worth increases to an average of $945,480 and a median of $272,976 between the ages of 75 and 79. The average net worth of people aged 80 and more is $973,141, with the median being $235,193.
In order to feel more at ease with retirement planning, use these savings standards. Then, you should investigate your options more than the general rule of thumb suggests. In addition to putting money away, you should plan for how you will spend your free time when you finally retire. In the end, that’s why you’re putting money aside.