Average Net Worth by Age: How Do You Compare?
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Net worth can be a useful snapshot of financial health, showing how savings, investments and assets add up over time.
Using data from the Federal Reserve Board’s Survey of Consumer Finances, we explore the average net worth by age and average median net worth by age to show how wealth can change across life stages.
What is net worth?
Net worth is what you own, minus what you owe. Using our net worth calculator, you can determine yours by deducting the value of all your liabilities (such as credit card debt and student loans) from the value of all your assets (including your home, if you own one, and the money in your retirement accounts).
What is the average American net worth?
So how do we determine the average net worth of Americans? The Federal Reserve Board issues the Survey of Consumer Finances every three years to share information about family incomes, net worth and more.
According to the most recent report, released in October 2023, the overall average net worth of U.S. households was roughly $1.06 million in 2022.
Median net worth by age
That average seems high, right? That’s because affluent households drive the average up. Looking at the median, or the midpoint value, is a more accurate representation of the everyday person. The overall median net worth of U.S. households was $192,700 in 2022.
Average net worth by age
Net worth totals vary by education, income, race and other factors. We’ll focus on the median and the average net worth by age for all Americans:
Age of head of family | Median net worth | Average net worth |
|---|---|---|
Under 35 | $39,040. | $183,380. |
35-44 | $135,300. | $548,070. |
45-54 | $246,700. | $971,270. |
55-64 | $364,270. | $1,564,070. |
65-74 | $410,000. | $1,780,720. |
75+ | $334,700. | $1,620,100. |
» RELATED: Learn the average credit score by age.
How important is net worth?
Net worth is one way to check your financial pulse and spot strengths and opportunities for growth. For instance, you might find that you have more assets than you realized, or that your debt is making it harder to build wealth. But it isn't a perfect picture of financial health.
A high net worth doesn’t necessarily mean a high standard of living or financial security. For example, a person’s home may pad their net worth figure, but they could struggle with daily expenses if they have no savings.
And consider that a low or negative net worth doesn’t mean you’re failing financially. Many factors, like student loans or medical debt, can influence net worth in ways that aren’t always within your control.
Curiosity about others’ net worth can motivate us to set and pursue financial goals. It can also make us feel unnecessarily inferior. It’s important to remember that net worth can change with time and is just one way to assess financial well-being.
How to increase your net worth
There are many tactics you can use to build net worth. Start with a few basic steps:
Choose a debt payoff strategy
Create a plan for shedding burdensome liabilities. We recommend paying down debts with the highest interest rates first, an approach known as the debt avalanche. Another option you may consider is debt consolidation: rolling multiple debts into one payment.
Grow your money
Any level of saving will add up, whether it’s stashing $200 or $20 per month. Set up automatic transfers to a savings account, and take advantage of competitive account interest rates if you can.
If your employer offers a 401(k) match, aim to maximize those contributions. Having a plan in place to help you start investing may also help you reach your goals faster.
Increase your income
Sometimes it might feel like you don’t have enough money left over to save and/or invest. If you want to pad your income, you may consider picking up a few side hustles, negotiating your salary or looking for a higher-paying job.
» Learn about how to make money
Be patient
The trend for most people is that net worth increases as they get older. It’s also essential to be as consistent as you can with your savings so that compound interest can do its job in helping your invested money grow over time.
Keeping track of your net worth may help you ensure you’re on track with your long-term goals. One way to do this is by using the free NerdWallet app to track your net worth, budget, credit score and credit report.
Factors beyond your control can affect your net worth, such as stock market swings and sudden changes in income. The goal should always be to try to pivot as necessary to get your finances back on track.
