Net Worth by Age: What Actually Matters
By FiscallyAI Editorial (AI-assisted) • Updated 2026-02-19 • Educational content
What Is Net Worth?
Net worth is simple math: Assets - Liabilities = Net Worth
- Assets: Cash, investments, home equity, car value, retirement accounts
- Liabilities: Mortgage, student loans, credit card debt, car loans
Example:
Assets: $50,000 (savings + 401k + car) + $30,000 (home equity) = $80,000
Liabilities: $15,000 (student loans) + $5,000 (car loan) = $20,000
Net Worth: $80,000 - $20,000 = $60,000
Median Net Worth by Age (US, 2022 Federal Reserve Data)
| Age | Median Net Worth | Average Net Worth* |
|---|---|---|
| Under 35 | $30,600 | $183,500 |
| 35-44 | $91,300 | $436,200 |
| 45-54 | $168,600 | $833,200 |
| 55-64 | $212,500 | $1,175,900 |
| 65-74 | $266,400 | $1,217,700 |
| 75+ | $254,800 | $977,600 |
*Average is higher than median because ultra-wealthy individuals skew the average upward. Median is more representative of "typical."
Why These Numbers Can Be Misleading
Comparing yourself to these benchmarks often does more harm than good. Here's why:
- Location matters: $100k net worth means different things in NYC vs. rural Kansas
- Student loans: New graduates with degrees have negative net worth — but higher earning potential
- Home equity: Homeowners have higher net worth, but renters aren't necessarily worse off
- Income trajectory: Two people with the same net worth at 30 could have very different futures
- Family help: Inherited wealth, help with down payment, etc. skew comparisons
What Actually Matters
Instead of comparing to benchmarks, focus on these metrics:
1. Are You Increasing Your Net Worth?
The trend matters more than the absolute number. Calculate your net worth annually. Is it going up? Good.
2. What's Your Savings Rate?
Percentage of income saved/invested matters more than current balance. Someone saving 30% of $40k will outpace someone saving 5% of $100k over time.
3. Are You on Track for Your Goals?
Forget age benchmarks. What do YOU need? Retirement? House? Financial independence? Work backward from your goals.
4. Is Your Debt Productive or Destructive?
Student loans for a degree that increased your earning power? That's different from credit card debt from overspending.
Rules of Thumb (If You Must Compare)
Some people find benchmarks motivating. If that's you, here are rough guidelines:
- By 30: Net worth = 1x your annual salary
- By 40: Net worth = 3x your annual salary
- By 50: Net worth = 6x your annual salary
- By 60: Net worth = 8-10x your annual salary
These are guidelines for retirement savings targets, not absolute rules. Your situation may vary.
How to Calculate Your Net Worth
- List all assets:
- Cash (checking, savings)
- Investment accounts
- Retirement accounts (401k, IRA)
- Home value (if you own)
- Car value (Kelley Blue Book)
- Other valuable assets
- List all liabilities:
- Mortgage balance
- Student loans
- Car loans
- Credit card balances
- Personal loans
- Subtract: Total Assets - Total Liabilities = Net Worth
Increasing Your Net Worth
- Pay off high-interest debt — This is an instant net worth increase
- Save consistently — Automate transfers to savings and investments
- Invest for growth — Long-term investments grow faster than savings
- Increase income — Negotiate raises, start a side hustle, change jobs
- Control lifestyle inflation — Don't increase spending as income grows
Related Tools
Related Guides
Sources
Disclaimer: This content is for educational purposes only. Benchmarks are general guidelines, not personalized advice. Not financial advice. See our full disclaimer.