The Average Net Worth of US Households by Age, Ep #235

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Over the last three years, US net worth has increased drastically. But it is taboo to talk about money with family and friends, let alone net worth. But don’t you want to know how you are doing relative to your peers? If so, this is the episode of Best in Wealth for you. In this episode, we break down the numbers to see how you are doing compared to the average American.

What is the average net worth of US households with age factored in? Find out what the numbers are—and why it matters—in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement Click To Tweet

Outline of This Episode

  • [2:23] Average net worth by age
  • [4:18] What is net worth?
  • [5:15] What is the average net worth of US households?
  • [6:57] What is the median net worth of US households?
  • [7:40] The average and median net worth by age bracket
  • [9:19] Are you on track with the median or average?
  • [13:50] Your goal depends on your goals

What is net worth?

Your net worth is your assets minus your liabilities. It is everything you own—your house, car, stocks, rental properties, retirement accounts, etc. minus anything you owe to others (credit card debt, student loan debt, mortgage, car loans, etc.). Net worth today includes adjustments for inflation.

What is the average net worth of US households?

The average net worth of US households in 2022—across all age groups—was $1,059,000, an increase of $200,000 from the average net worth in 2019. It seems high, right? The typical American is not walking around with a million-dollar net worth. So what is happening?

The average net worth is skewed by the outliers. If nine people walked into a bar with an average net worth of $10,000 and Elon Musk walked in—whose net worth is north of $200 billion—the average net worth in the bar would skyrocket to over $20 billion.

That is why you have to look at median net worth. Half of households will fall above or below that line. The median net worth of US households is $192,700. That is 1/5th of the average net worth—but still an increase of about $50,000 since 2019. But these figures do not adjust for age which is the most crucial variable we need to control for.

What is the average net worth of US households? I share the interesting numbers (so you know where you stand) in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement Click To Tweet

The average and median net worth by age bracket

Here is the average net worth by age:

  • Under 35: $183,000
  • 35–44: $548,000
  • 45–54: $971,000
  • 55–64: $1.5 million
  • 65–74: $1.8 million
  • 75+: $1.6 million

But the average net worth is skewed by the richest of the rich. So what is the median?

  • Under 35: $39,000
  • 35–44: $135,000
  • 45–54: $247,000
  • 55–64: $364,000
  • 65–74: $410,000
  • 75+: $335,000

Are you on track with the median or average?

If you are listening to this podcast, you likely earn over the average salary in the United States (which is $50,000). If you are making $100,000+, look at the median net worth to see how you compare. If you are looking to overachieve, look at the averages.

If you are in the top 10% of incomes, we need a realistic number for you. If you are in the 90th percentile of income earners, and you are 45–54, you should aim for $1.9 million. If you are 55–64, you should shoot for $2.9 million. Are you on track?

Listen to hear what the rest of the brackets should look like for high achievers. Because we all want to be ready for retirement, right?

What is your net worth? Do you know where it should be at your current age? Listen to this episode of Best in Wealth to learn more! #wealth #PersonalFinance #WealthManagement Click To Tweet

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Podcast Disclaimer:

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

About the author, Scott Wellens

Scott Wellens, CFP® is an investment advisor and founder of Fortress Planning Group. After earning his Bachelor of Science degree from the University of Wisconsin-Oshkosh, Scott quickly ascended to become a Vice President of North American Sales at a major regional provider of telecommunications infrastructure. While financially successful in this role, Scott searched for ways to pursue his passion related to financial literacy and providing financial freedom for both his own family and others. During his search, Scott became curious about the significant gap he found in the financial services sector: he was unable to find a comprehensive financial planner that maintained a family stewardship lens without being attached to financial products. Scott decided to fill that gap by creating his own planning firm that maintains a strong passion for comprehensive, unbiased wealth planning that is genuinely client-centered.

Scott resides in Menomonee Falls, WI with his family. He is the father of three active and independent daughters who keep him on his toes. Scott is an active community member, serving on the Hamilton Education Foundation Board, serves as a Dave Ramsey Financial Peace facilitator and leads the All Pro Dad’s group at their local elementary school. Scott enjoys spending his free time visiting state parks with his family, reading, and watching the Milwaukee Bucks and the Green Bay Packers win ball games.

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