Median networth by age decade in the US
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Every three years, the Federal Reserve Board conducts the Survey of Consumer Finances to provide information about family net worth and income in the U.S.
The most recent report, released in September 2020 and based on data collected in 2019, shows that the median U.S. household net worth is $121,700. However, this figure is more than double for people aged 65 to 74.
According to the Fed data, the median net worth for Americans in their late 60s and early 70s is $266,400. The average (or mean) net worth for this age group is $1,217,700. Since averages can be skewed by high net-worth households, the median is a more accurate representation.
While $266,400 may seem substantial, people in their 60s often start using their net worth to cover living expenses in retirement. Understanding how net worth works and how it relates to living on a fixed income is crucial when planning for your non-working years.
While you’re still employed, you might not think much about your net worth, focusing instead on immediate financial responsibilities like paying bills, saving for significant future expenses, and maintaining your home and car. It might feel like another paycheck is always on the way, or that you could take on a side job if needed.
Unfortunately, many Americans fall behind on their retirement savings while trying to manage daily expenses.
According to retirement-plan provider Fidelity Investments, people should aim to have ten times their income saved by age 67 to enjoy a comfortable retirement. This means most people should accumulate a net worth of about $514,280 based on the U.S. Bureau of Labor Statistics’ median American earnings data, although some experts suggest you need $1 million or more to retire comfortably.