Average Net Worth by Age: Are You as Rich as Your Peers in the Latest Fed Data?
While the typical American family's wealth barely budged, retirees and high earners pulled far ahead. Here is how your balance sheet compares across every decade.
Did your family grow wealthier over the past few years? If you're an older American, earn a high salary or own certain assets, you probably got a lot richer. But the typical American family saw more modest gains in wealth.
That's according to the Federal Reserve's latest Survey of Consumer Finances — a comprehensive benchmark published every three years to track how household wealth is shifting across the country.
Median family net worth (the difference between families' assets and liabilities, adjusted for inflation) rose 2% from 2022 to 2025 to $215,900, according to the survey. Median net worth is less distorted by extremely wealthy people than average net worth, which a small number of high-net-worth households can skew upward.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A widening generational divide: retirees and the rich win
In the Fed report, Americans 75 and older saw the biggest median net worth gain, up 37% to $504,900 from 2022 to 2025. And median wealth for the nation's top 10% of earners increased 31% to $3.67 million.
Rob Haworth, senior investment strategist at U.S. Bank Asset Management Group, says older Americans and affluent households have benefited from a bull market in stocks since the start of 2023 and the compounding of larger asset bases.
"It's been a spectacular time to own equities (over) the past three years." — Rob Haworth
The broad U.S. stock market posted double-digit percentage gains in 2023, 2024, and 2025. For example, Vanguard S&P 500 ETF (VOO), which tracks the broad S&P 500 stock index, posted gains (including dividends) of 26.3%, 25.0% and 17.8%, respectively, in those years. "Stocks tend to increase in value at higher rates than lower-risk fixed-income investments" like bonds and cash, says Haworth.
Young, Black and lower-income households lost significant wealth
Many American households grew poorer during this period. The bottom 20% of earners, for example, saw median net worth fall 6% to $14,400. Americans under 35 saw median net worth drop 23% to $33,000.
Younger Americans faced an additional hurdle: mounting liabilities.
"Borrowing decreases net worth," says Haworth. "(Younger families) trying to get into a home (will take on a mortgage), which trims their net worth." The younger generation often has student loan debt.
Two groups suffered the worst losses. Median wealth for Black households fell 25% to $36,800, and households without a high school diploma saw their wealth cut by more than half, plunging an astonishing 55%.
What caused such a dramatic loss of wealth over only three years? Disadvantaged and younger households were largely locked out of the asset boom. Black households and those without a high school diploma were hit hardest because they historically have lower stock market participation and lower homeownership rates. As a result, they missed out on surging home and stock market prices from 2023–2025.
Remind me, what is net worth?
Net worth isn't just a calculation for the wealthy. Regular folks with 401(k)s, investment portfolios, real estate holdings, boats, and expensive antiques have a net worth, too. Keeping tabs on your net worth is just as important as monitoring your IRA or 401(k).
Net worth is the difference between your assets and your liabilities. It's what you own minus what you owe. These twin inputs give you a more complete picture of your financial situation.
Calculating your net worth isn't just about tallying the value of assets you own, such as a 401(k), shares of SpaceX, the BMW in your driveway, or the antique chandelier in your dining room. You must plug your debt into the equation.
For example, if you have $1 million in your 401(k), own a home worth $1.4 million, and drive a BMW valued at $100,000, your assets total $2.5 million.
However, if you owe $1 million on your house, $50,000 on your car, $45,000 on a personal loan, and $5,000 on a credit card, your liabilities total $1.1 million. When you do the math, you realize your net worth isn't $2.5 million, but $1.4 million.
To see how your wealth stacks up against peers, calculate your net worth and compare it with the Fed's latest data.
Average net worth by age stats
Below, we highlight net worth statistics through 2025 from the Federal Reserve’s "Survey of Consumer Finances." The net worth data show both the average and the median (the midpoint, with half the values higher and half lower).
Let's start with the big picture. In 2025, the median net worth of all Americans was $215,900. The average net worth (which skews upward due to folks with extremely high net worths) was $1.24 million, according to the Fed. You might want to focus on the median net worth, as it's less affected by the mega-rich.
As the table shows, older Americans tend to have a higher net worth because they've had their entire lives to accumulate assets such as 401(k)s, IRAs, real estate and equity in their own businesses.
Age Range |
Average Net Worth |
Median Net Worth |
|---|---|---|
Younger than 35 |
$135,400 |
$33,000 |
35 - 44 |
$681,900 |
$155,600 |
45 - 54 |
$1,244,500 |
$253,700 |
55 - 64 |
$1,878,000 |
$411,900 |
65 - 74 |
$1,897,600 |
$431,300 |
75 or older |
$1,962,200 |
$504,900 |
All ages |
$1,241,500 |
$215,900 |
Source: Federal Reserve Survey of Consumer Finances (2025) (PDF).
Knowing your net worth can offer valuable insights into your money habits and future goals, says Tim Steffen, director of advanced planning at Baird Private Wealth Management. It can help you budget better and estimate when you can retire.
"You may have a good handle on what you spend every year, what kind of lifestyle you want to live, but you have to know if you have the resources available to support that during your retirement years," says Steffen.
Key factors that impact net worth include education level and whether households own their home or rent. Homeowners can build equity with each mortgage payment they make and benefit from home price appreciation.
The average net worth for those with a college degree was $2,263,300, compared with $470,600 for Americans with a high school diploma, Fed data show. Similarly, the average net worth for homeowners was $1,812,900 compared with $153,500 for renters.
Retirement savings are also a key component of Americans' net worth. Retirement assets accounted for a third (33%) of all household financial assets in the U.S. at the end of June 2026, according to the Investment Company Institute. Total U.S. retirement assets reached $51.2 trillion at the end of the second quarter of 2026, up 7.9% from the end of March.
How does net worth differ between actual age groups? To find out, we looked at proprietary data supplied by Empower. Data is through September 2026.
Age by decade |
Average net worth |
Median net worth |
20s |
$168,806 |
$7,498 |
30s |
$388,530 |
$28,616 |
40s |
$869,269 |
$88,856 |
50s |
$1,539,729 |
$221,911 |
60s |
$1,761,625 |
$334,516 |
70s |
$1,650,829 |
$283,479 |
80s |
$1,489,471 |
$290,219 |
90s |
$1,408,603 |
$277,086 |
*Anonymized user data from the Empower Personal Dashboard as of September, 2026.
It's no surprise that younger people have a lower net worth. They're just starting their careers, typically don't earn as much as older workers and have yet to accumulate significant assets such as stocks, bonds or real estate.
Net worth tends to peak in the 60s because lifetime savings have had maximum time to compound, just before retirement drawdowns begin to chip away at account balances.
How to build your net worth
Just because you don't earn a huge salary like a CEO of an American corporation or a professional athlete doesn't mean you can't build a sizable net worth.
Here are some tips to help build your net worth.
Automate your contributions. Building wealth and growing your net worth takes consistent saving, investing in a diversified portfolio and staying invested over the long haul.
"Discipline and consistency are the key to accumulating wealth," says Gabe Shahin, president and CEO of Falcon Wealth Planning. "The easiest way to do that is to set it (your automatic 401(k) payroll deductions) and forget it."
Shahin advises younger workers to start saving as early as possible to benefit from compounding.
Diversify your portfolio. While you might make a killing by buying a hot stock, you're better off spreading your money across several investments.
"A big part of growing net worth is having a diversified portfolio," says Steffen. "Putting all your eggs in one basket can be a great way to create wealth if you can hit a home run. But it’s a horrible way to keep wealth, because that home run can turn into a strikeout the next day."
Buy assets that appreciate in value and beat inflation. You can't build wealth by playing it too safe and hiding your money under the mattress, earning a zero return.
"The first part (of growing your net worth) is you've got to save your money," says Steffen. "The second part is you have to invest your money. The third part is you have to stay invested."
"Finding assets that appreciate is really the key to building wealth," says Tara Lawson, a senior wealth planner at US Bank Private Wealth Management. "It's that compounding interest, that compounding growth. You've got to outpace inflation. Whatever your risk tolerance is, make sure your money is performing for you."
Keep calm in rough markets. Staying the course is particularly important when stocks hit a rough patch and the benchmark S&P 500 suffers a correction, defined as a loss of 10% or more from a recent high.
Since World War II, the broad market gauge has suffered 25 corrections (drops of 10% to 19.99%), according to data from CFRA Research, a Wall Street research firm.
While the average decline was 14%, it took just four months, on average, for the market to recover all its losses, says Sam Stovall, chief investment strategist at CFRA.
The takeaway: Staying the course is the best way to avoid locking in losses, benefit from the recovery, and not harm your net worth.
"I like to say that stock market history can serve as 'virtual Valium,' since it can help you sleep better when you know how quickly the market tends to get back to breakeven from declines," Stovall said.
Take advantage of workplace retirement plans. Your 401(k) can quietly build your net worth over time. The winning game plan of consistent savings through payroll deductions, the benefits of growth, taking advantage of employer matching contributions, and benefiting from the tax-advantaged perks of retirement plans can’t be overemphasized.
"It’s not a sexy strategy, but investing for the long term works," says Lawson.
For 2026, the 401(k) contribution limit for workers under age 50 has increased by $1,000 to $24,500. The catch-up contribution limit for workers age 50 and older is $8,000, for a total 2026 401(k) contribution limit of $32,500. Thanks to the SECURE Act 2.0, savers ages 60 to 63 can boost their catch-up contribution to $11,250, for a total contribution of $35,750, according to the IRS. This super catch-up provision should help workers near retirement make up for leaner years when they might not have contributed enough.
If you earned over $150,000 in 2025 wages, you must make your catch-up contributions to Roth accounts (after-tax) starting in 2026.
Finally, if you're a high earner, you may be able to swing a mega backdoor Roth, which can allow you to sock away up to $72,000 per year in a tax-free account.
Don't load up on debt. Since debt is subtracted from your assets to determine your net worth, the less debt you have, the better, notes Steffen.
"I often get calls from advisers who say that they have a really high-net-worth client with X millions of dollars, and they’re going to be fine for retirement," says Steffen. "I counter, ‘Well, how do we know that?’ Maybe they have a lot of money, but maybe they spend a lot, too."
Why tracking "liquid net worth" is key
One weakness of using net worth to track financial health is that it doesn't capture the full picture of financial well-being.
For example, net worth doesn't account for cash flow. In other words, someone with a high net worth due to holdings in illiquid assets, or those that aren't always easy to sell, such as real estate or private equity, might not have enough cash on hand each month to pay the bills.
Shahin defines so-called "liquid net worth" as the ability to access your money within seven days. "So, your house is not part of your liquid net worth," says Shahin.
Liquid net worth includes checking accounts, money markets, assets such as stocks and mutual funds held in brokerage accounts, and even money in traditional 401(k)s and IRAs that you can withdraw penalty-free after age 59½.
Tip: If you want total financial flexibility when you retire, make sure a good chunk of your net worth is liquid, or easy to access and convert to cash quickly. Living in a $2.5 million home and having $2.5 million invested in an illiquid private equity fund is nice, but these assets are not as handy as a checking account, ATM, or brokerage account when you need to pay for things. "You can't eat your house," said Ted Halpern, regional president and senior managing director at MAI Capital Management. "You need cash flow to go out to dinner."
Read More "Average by Age" Stories
