Here's the Average Net Worth by Age. How Does Yours Compare?
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Calculating your net worth is important. This number is like a scorecard for your finances. A higher net worth means you have more assets like a home or money in your brokerage account. It also means you have fewer liabilities, like credit card debt.
Comparing your net worth to others can also help you see how your wealth-building journey is going. You shouldn't compare yourself to the average person, though, as it's expected that older people will have a significantly higher net worth than their younger counterparts. Instead, see how your net worth stacks up against others similar in age.
The average net worth for every age group
Net worth is calculated using a simple formula:
Add up the value of everything you own. This would be the market value of your home, your investment and savings accounts, your personal property, and things like your vehicle.
Add up all of your debts. This includes your mortgage, car loan, personal loan, credit card balances, and anything else you owe.
Subtract the value of your debts from the value of your assets. The amount that's left over is your net worth.
The table below shows the median net worth for people within different age ranges, so you can see how your own net worth compares.
Age Range | Median Net Worth |
|---|---|
35 and under | $39,000 |
35 - 44 | $135,600 |
45 - 54 | $247,200 |
55 - 64 | $364,500 |
65 - 74 | $409,900 |
75 and over | $335,600 |
Data source: Federal Reserve Board. Table by author.
You shouldn't panic if your net worth is pretty low as a young person since you'll probably be on par with your peers. But, if your net worth is still low when you're in your 60s and others your age have amassed close to half a million dollars, then you may have a problem.
Why does net worth matter?
So, why should you care about your net worth? It's a measure of how far you are along on your money journey. If you have a high net worth, then you're on the path to wealth or are wealthy already. If your net worth is very low, then you have a long way to go toward financial independence.
Eventually, everyone should aim to have such a large net worth that they can stop working and live off their assets. If you don't achieve this, then you're going to have a problem when you get too old to earn a paycheck. On the other hand, the earlier you get to this point, the better off you are since you'll be in good financial shape, even if something happens like a job loss.
If you have a low net worth, it puts you in a precarious position -- especially if you're older and have less time to amass more wealth. Your debts can end up overwhelming you and, if you have few assets to show for them, you won't have any financial security.
The good news is, if you aren't happy with your net worth, you can take steps to change it by working on buying more assets (like stocks and real estate) that grow in value or hold their value, and by working on eliminating liabilities by paying down your debt.
It may take some time, but hopefully you can catch up to others in your age range or even accumulate a larger net worth than your peers over time.
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