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What Is the Average American Net Worth by Age: An Overview

Susan Kelly

Oct 09, 2023

A person's net worth is a financial statistic that can be used to keep one's financial situation in perspective. In this context, "average net worth by age" refers to the total wealth of American households divided by the total number of American households.

Households are more common than individuals in metrics since a household can contain anywhere from one person to many. Age is correlated with an increase in net worth because of the potential for increased income, increased asset ownership, and decreased debt. Here, we will discuss what is the average net worth of American households by age.

What Is Net Worth?

There is a large disparity in the wealth of Americans across the life cycle. Do you want to know what's the average net worth of an American? If yes, it is discussed below. One indicator of financial health is one's net worth.

To determine your net worth, tally up all your assets and deduct all. Those who have made wise financial decisions with their money should expect a sizable net worth. Other people may not receive the same outcome when they add liabilities like credit cards and student loan debt.

The concept of "net worth" gained popularity during an era when the rise to the wealth of the world's top individuals captured the public's imagination. Nonetheless, everyone has a net worth, and many factors in your life contribute to that worth.

What Is The Average American Net Worth By Age?

The median net worth of Americans between the ages of 65 and 74 was $266,070 in 2019, while that of those between 18 and 34 was $14,000. That is to say, the median wealth of retirees in the United States was 19 times that of the under-35 age group.

After age 35, the average American's wealth begins to rise. The median wealth of American adults aged 35 to 44 was $91,110, more than six times that of their younger counterparts. Americans in their early 50s and late 40s had a lower net worth disparity than those in their late 50s and early 60s.

The median wealth of American citizens aged 45–54 was $168,800, while that of citizens aged 55–64 was $213,150. The wealthiest age group in America was 65-74, with a median of $266,070. The typical net worth of Americans age 75 and older is $254,900, down marginally from the previous year.

How Is The Net Worth Calculated?

Adding up all your possessions' value is the starting point for a net worth calculation. Among these is the cash worth of your checking and savings accounts and your insurance policies, as well as the current market value of your investment accounts, retirement savings, home, vehicle, and objects of substantial value (art, jewelry, furniture).

The next step is to tally up the full amount of your debts. Your home loan, auto loan, education loan, personal loan, and credit card debt all count here. When all your debts are paid off and your assets are valued, that's your net worth. You can have a positive or negative net worth depending on the final tally.

Don't freak out if you have a negative net worth right now. If it is still making mortgage or loan payments, has just bought a house, or hasn't started saving, it's not unusual for a young professional straight out of high school or college to have a negative net worth.

How To Increase Your Net Worth?

While there are other indicators of financial health, increasing your net worth can only help. The more financial resources you have, the better off you will be. Having a lot of personal debt might make building wealth difficult and put off doing things like investing.

Making a plan and committing to it is crucial to eliminate debt successfully. The avalanche and snowball methods are the most well-known approaches to reducing debt. Tax-free growth of retirement funds is a terrific method to increase your net worth.

Over a few decades, your savings in a 401(k), Roth IRA or other retirement plan can grow substantially. You may improve your financial situation by paying down debt, saving, and investing, all of which can be facilitated by learning a new skill or starting a side hustle. You can improve your financial situation and raise your Social Security benefit in retirement by increasing your monthly income.

Why Is Net Worth Important?

A person's net worth can be used as a financial temperature gauge to reveal strengths and weaknesses. But the image isn't without flaws. A high standard of life is not necessarily associated with a high net worth.

Even though a person has a high net worth because of their home, they may be very short on cash if they have no savings and no plans to sell their property. We can be inspired to work towards our financial objectives by just wondering about the wealth of those around us.

Inferiority complexes are another side effect. Remember that your net worth is not a static amount. With time, it might develop either positively or negatively.


What is the average net worth of an American? What is net worth and all that you need to know about net worth is discussed in this article. If you add up all of your assets, whether liquid or not, and subtract all your debts and liabilities, you get a picture of how much money is in your possession, known as your net worth.

The bigger your net worth, the better off you are. Yet, determining a reasonable target for your financial planning purposes can be challenging. Considering the time required to accumulate money, the median wealth changes with age.

An idea of your net worth and how it stacks up against people of the same age in the United States can be a useful gauge of your financial health and is important too.

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