Before we look at the average price by age, let me start by saying that there are pros and cons to tracking even the absolute value of it. And, while understanding where you stand against the averages can be a useful indicator, it can also be an exercise in futility that reinforces that you’re the wrong thing.
The Benefits and Pitfalls of Marking Your Net Worth Against Estimates
Comparing your net worth to averages can provide a useful context for understanding your financial situation. It allows you to check who you are usually on the way compared to others in your age group. This vision can motivate you to set realistic goals, adjust your financial habits, or celebrate milestones.
However, relying heavily on benchmarks has drawbacks. The estimates do not account for individual circumstances, such as cost of living, career paths, or different financial goals. They may make you feel unnecessarily depressed if you’re below par, or overconfident if you’re above, even if your financial habits need improvement. (NOTE: Often people who have a lot of money, spend a lot of money and don’t really build wealth.)
Many retirement articles suggest that you need $1 million to retire. But, it is not true for most people. If you have low expenses and a reliable income, then very little savings are required and a low net worth is fine.
TIP: Instead of comparing yourself to others, it’s often better to focus on your own development and how your worth aligns with your goals and lifestyle. (Use the Boldin Planner to manage a complete financial plan for the life you want.)
Average Net Worth of all United States households
Now that you have an idea of how to measure yourself against the average, let’s look at the numbers. According to the most recent survey of consumer finances (SCF) from the Federal Reserve:
- The average net worth of all Americans is $1,059,470
- Producer is $192,700 (This is a realistic and reasonable number.)
Yes. There is a big difference between an average and an average. As a reminder:
- Mean is another way of saying average. You find the ratio by adding all the numbers, then dividing by how many numbers there are. The ratio can be reversed by really big and really small numbers.
- The average price may seem high because of a few very rich people. It’s a trivial way to measure your situation.
- Median is the middle number when the numbers are ranked in order.
- The median income is more representative of the financial reality of most households.
I said can be distorted by really big or small numbers, but which is in between it shows the data center more reliably if there are outliers.
Net Worth by Age
Total Population in their 20s
It should come as no surprise that the overall median value is lower for this age. However, the more young people save, the more they can benefit from the magic of compound interest.
Age range 20-24
- Average net worth: $120,896
- Median net worth: $10,800
Age range 25-29
- Average net worth: $120,185
- Median net worth: $30,160
Total Number of People in their 30s
As people in their 30s begin to buy homes and raise their incomes, the median price starts to really rise.
Age range 30-34
- Average net worth: $258,073
- Median net worth: $89,801
Age range 35-39
- Average net worth: $501,289
- Median net worth: $141,200
Total Population in their 40s
It is interesting to note that the median price actually dropped from $141,200 for 35-39 year olds to 40-44 year olds. It can be due to competing mid-life priorities.
Age range 40-44
- Average net worth: $590,718
- Median net worth: $134,730
Age range 45-49
- Average net worth: $781,923
- Median net worth: $212,800
Total Population in their 50s
Your fifties are a time to focus more on your future and decide if your financial situation is ready for retirement. As you can see the average population at this age is very far off the mark with what many “experts” say is necessary to have a secure future.
Age range 50-54
- Estimated net worth: $1,132,532
- Median net worth: $272,800
Age range 55-59
- Average net worth: $1,442,075
- Median net worth: $320,700
Total Population in their 60s
As you can see, there is a decent increase in the median net worth from the 50s to the 60s, although it is much less than you might think. This does not mean that most people retire poor, although retiring on Social Security alone is something.
Age range 60-64
- Average net worth: $1,675,214
- Median net worth: $394,010
Age range 65-69
- Estimated net worth: $1,836,884
- Median net worth: $394,300
Total Population 70-Plus
People are often surprised to learn that retirement is not a time of net worth. It’s rare to see your net worth increase, especially if you retire early. (See how to increase wealth after retirement.)
However, health care costs become more important as you get older and will play a larger part of the total cost for people in their seventies and older.
Age range 70-74
- Average net worth: $1,714,085
- Median net worth: $433,100
Age range 75-80
- Estimated net worth: $1,630,969
- Median net worth: $316,000
How to Track Your Net Worth (and Other Important Financial Metrics)
When you build and maintain a comprehensive financial plan with the Boldin Retirement Planner you can track a variety of financial wellness metrics, develop good financial habits, make strong financial decisions, and stay on track to the future you want.
Appropriate Follow-up: The Boldin Retirement Planner optimizes our earnings to be tracked. What makes our approach different is that we focus on your whole thing over time, not just today. This long-term perspective can help you make better decisions.
- NEW: We now show you how your current value changes from month to month and we will develop more historical tracking in the following quarters.
Financial Life Score: More important than your overall profit may be the Financial Wellness Score, which assesses how you’re doing against 15+ key metrics related to your finances. This score paints a highly personalized picture of how you’re doing and includes Chances of Retirement Success, next month’s cash flow, and more.
Lots of Other Ideas: The software is packed with charts, trainer alerts, testers, and other features to help you see where you stand. And, most importantly, figure out what you need to do to live the life you want.
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