What’s the average net worth by age?
Editorial staff, J.P. Morgan Wealth Management
- Younger households tend to have a lower net worth, while older households tend to accumulate more wealth over time, with the median net worth peaking in the 65 to 74 age group, according to data.
- The U.S. household median net worth ($192,900) may provide a clearer picture of typical wealth distribution than the average ($1.06 million), which is skewed by high-net-worth individuals.
- Paying down debt, investing wisely and increasing income may be helpful steps to growing your net worth over time.
Your net worth serves as a snapshot of your financial situation. Net worth calculations include the value of your assets and the size of your liabilities, which gives you a clear picture of your finances.
Generally, households with a higher net worth enjoy a healthier financial picture than households with a lower net worth. As you navigate your financial journey, comparing your current net worth against the average may serve as a helpful benchmark to help you adjust your financial goals and strategies.
Before diving into average net worth figures, it’s important to understand what net worth is and how it’s calculated. Net worth is the difference between what you own (your assets) and what you owe (your liabilities).
Assets can include cash, savings, investments, real estate and valuable possessions, while liabilities encompass debts like mortgages, student loans and credit card balances. By subtracting liabilities from assets, you get a snapshot of your financial standing, helping you track your progress toward your financial goals.
Explore how to calculate your net worth, see how your net worth stacks up to those in your age demographic and learn how to build your net worth in this guide.
How is net worth calculated
First things first, how do you calculate your net worth? Start by adding up your assets and liabilities separately.
Assets include things like:
- Cash
- Savings accounts
- Retirement accounts
- Investments
- Real estate
- Vehicles
- Jewelry
Liabilities include things like:
- Mortgages
- Student loans
- Credit card debt
- Auto loans
From there, you’ll subtract your assets from your liabilities to arrive at your net worth. There are digital tools that can help you do this, if you don’t want to calculate this manually, too.
What’s the average American net worth?
The average net worth of U.S. households is approximately $1.06 million, according to the most recent Survey of Consumer Finances by the Federal Reserve Board, conducted in 2022.
Notably, the median net worth – which represents the midpoint of household net worths across surveyed families – sat at $192,900 in the survey. Since the median represents the middle of the road, it’s generally considered a more accurate net worth metric because households with extremely high net worths push the average higher.
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What is the average net worth by age?
After seeing how you stack up against the general national average, it’s time to see how your net worth stacks up against your age group.
Here’s a look at the medians and averages for households by age:
U.S. family net worth by age
What is a good net worth by age?
After seeing how your net worth compares to the average, it may be natural to wonder what qualifies as a good net worth.
First, it’s important to aim for a positive net worth. If you’ve determined you have a positive net worth, you’re on the right track.
Beyond staying out of the red, you’ll have to decide what your financial goals are to determine how your net worth aligns with your financial goals. For example, if you want to retire with $2 million in 30 years, a good net worth for your age will look very different from someone planning to retire with $1 million in 20 years.
Of course, it’s nice to at least keep up with the median net worth for your age group. But for some, that won’t be enough to hit their financial goals. Make the time to map out your financial plans to decide if your net worth matches up with your desired future.
How to build your net worth
After taking a closer look at your net worth, you might decide there’s room for improvement. Below are some steps you can take to grow your net worth:
- Pay down high-interest debt: If you’re carrying around high-interest debt, like credit card debt, make it a priority to pay this off. Eliminating your debts lowers your liabilities and increases your net worth.
- Consider saving automatically: It may seem easier to spend than to save which is why you may want to consider making your savings goals automatic. It may help you to build your net worth over time.
- Invest: A straightforward investment strategy may allow you to put your funds to work.
- Increase your income: Boosting your income through a job change or side hustle may give you an opportunity to pay off debt faster and save more money every month.
The bottom line
Comparing your net worth to age-based averages can provide a useful benchmark for evaluating your financial progress, but it’s important to view these statistics in proper context. While peer comparisons may highlight potential savings gaps or validate your current financial trajectory, they don’t account for individual circumstances like your geographic location, career path, family obligations or personal financial goals. Consider prioritizing making a wealth plan or speaking to a financial advisor to evaluate your individual circumstances.
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Editorial staff, J.P. Morgan Wealth Management
