# The average net worth by age in America Source: https://www.empower.com/the-currency/life/average-net-worth-by-age Kiwi News: https://news.kiwistand.com/stories/The-average-net-worth-by-age-in-America?index=0x669e9a76c02d9dba4b12af99107c2faf600e92041417231f6140d90752a12f28b35e2311 Submitted by tim on 2024-07-22 UTC, 1 upvote, 0 comments ## Summary Average net worth among Empower Personal Dashboard users rises with age until the 60s, then gradually declines, according to figures as of August 2026. The average is $163,710 in the 20s, $379,216 in the 30s, $854,445 in the 40s, $1,521,464 in the 50s and $1,747,349 in the 60s, falling to $1,639,178 in the 70s. Medians are far lower in every decade, such as $221,300 in the 50s compared with the $1,521,464 average, which the article says reflects a few high-wealth households skewing the averages. The article notes these figures are not directly comparable with Federal Reserve Survey of Consumer Finances data. ## Article Why is net worth important? But why does “net worth” even matter? Everyone has a net worth. Your net worth is a key indicator of your financial health, and knowing yours can help you manage your money better. Net worth (assets minus liabilities) provides one snapshot of financial health — though it doesn’t reflect cash flow, liquidity, or future risks. Average net worth by age The numbers below reflect Empower Personal DashboardTM users as of September 2026, with the average and median net worth of these individuals, broken down by age.* (These figures are not identical to, nor directly comparable with, representative national data from the Survey of Consumer Finances from the Federal Reserve.) Age 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 How is net worth calculated? Net worth is simply everything you own, or your assets, minus everything you owe, or your debts. It is calculated by subtracting what you owe to creditors from what you currently own. Or put another way, it’s the value of your assets after you’ve subtracted all your debts and liabilities. What makes up your net worth? Your net worth is the total value of your assets minus your liabilities. Following is a look at what the Federal Reserve Board considers to be assets and liabilities.1 Assets Cash within bank accounts, such as checking, savings, money market accounts, etc. Prepaid debit cards CDs and savings bonds Government bonds Health savings accounts Investment accounts, including 529 college savings plans and individual taxable investment accounts Retirement accounts, including IRAs, 401(k)s, and 403(b)s Life insurance policies with cash value Annuities with equity Value of vehicles, including cars, RVs, motorcycles, and boats Value of real estate, including rental homes and primary/residential homes Liabilities Mortgages Home equity lines of credit or home equity loans Credit card balances Installment loans, including personal loans, auto loans, and student loans Building net worth by age Remember that building net worth is a gradual process that occurs over the course of a person’s lifetime. As the data shows, net worth tends to increase over a person’s lifetime until the 60s. At this stage, net worth gradually begins to decrease as income falls during retirement and funds from investment accounts are withdrawn to meet living expenses. Here are some tips for building net worth during each decade of life: In your 20s For many people, the 20s are the time in their life when they are starting their professional lives and possibly a new career. Your earning potential may be somewhat limited, which might make it seem difficult to build net worth during this decade. The key is establishing good financial habits that will help you build net worth over the rest of your life, such as setting aside a certain percentage of pay each month to save and invest. In your 30s One of the keys to building net worth during this life stage is continuing to prioritize saving and investing. It can be easy for higher earnings to get swallowed up in mortgage and car payments, child-rearing expenses and splurging on a few luxuries like nice vacations and fancy dinners. Instead, it’s important to maintain the saving and investing disciplines that were established in the previous decade and even increase the percentage of income saved. In your 40s Growing financial responsibilities can make building net worth especially challenging during the 40s. One way to meet the challenge is to avoid falling into the trap of what’s sometimes referred to as “lifestyle creep.” As income grows, you may be tempted to try to “keep up with the Joneses” by moving into a bigger home, joining a country club, driving exotic cars or going on expensive vacations. It may be OK to enjoy the fruits of your labor, but keeping expenditures like these in check may go a long way toward building net worth during this life stage. In your 50s and 60s The 50s and 60s mark the beginning of the “stretch run” toward retirement for many people. The time window for building net worth during the wealth accumulation stage of your life is starting to shrink as retirement draws closer. Given the shrinking window before retirement, one of the most important net worth-building steps for you in your 50s and 60s may be to max out your retirement accounts. It’s also critical to consider paying down outstanding debt during this time. In your 70s and beyond During this life stage, the focus usually shifts to budgeting and portfolio withdrawal. Once you’re a retiree, you can either withdraw a set amount of money each month or withdraw a percentage of the portfolio balance each month. With the first strategy, the amount of income is more predictable, which makes budgeting easier. But you generally have more control over the portfolio’s overall drawdown and potential longevity with the percentage method. How do you build net worth? If you are ready to take steps to build your net worth, here are a few ideas to consider: Go automatic. When your money is automatically transferred into a savings or retirement account each month, you don’t need to think about it. As your income grows over time, increase the amount of money that’s transferred into savings. Pay down debt, especially high-interest credit card debt. Once you are consumer debt-free, consider paying down your home mortgage if you have one. Watch your spending. The less money you spend, the more you’ll have to save and build your net worth. For example, cut down on eating out at expensive restaurants, pare back your vacation budget and eliminate streaming services that you rarely use. FAQs What is net worth and how is it calculated? Net worth equals total assets minus total liabilities. Assets include cash, investments, retirement accounts, real estate, and vehicles. Liabilities include mortgages, student loans, and credit card balances. This simple formula provides a snapshot of overall financial health and can be tracked over time to monitor progress. What is the average net worth by age in 2026? Empower’s anonymized dashboard data shows average net worth rises with age. As of September 2026, average net worth is $168,806 in the 20s, $388,530 in the 30s, $869,269 in the 40s, $1,539,729 in the 50s, and $1,761,625 in the 60s. Net worth then begins to decline gradually in the 70s ($1,650,829) and beyond. How do averages compare with median net worth? Median figures are far lower than averages, highlighting how a few high-wealth individuals skew results. For instance, in the 50s, the average net worth is $1,539,729, but the median is only $221,911. This means half of individuals in that age range have less than $221,911 in net worth, offering a more realistic benchmark. Why does net worth decline after the 60s? Net worth often peaks around retirement age, then declines as people begin withdrawing savings, spending down assets, and experiencing reduced income. Required minimum distributions, healthcare costs, and lifestyle spending all contribute. While some continue growing wealth in retirement, averages show a natural drawdown phase in later decades.