Here’s the Average Net Worth by Age. How Does Yours Compare?

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Does net worth increase with age? Find out the average net worth of Americans at different life stages to see how your own wealth compares. [[{“value”:”

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.

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.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More