Net Worth by Age (U.S. Benchmarks)

Median vs. Average: Which Number Should You Use?

The median net worth — the midpoint where half of households have more and half have less — is the most useful benchmark for most people. The average (mean) is dramatically skewed upward by billionaires and multi-millionaires. For example, in the 65–74 age group, the median is $409,900 but the average is $1,794,600 — a 4.4× gap driven by extreme wealth concentration at the top. If you want to know if you're "on track," compare yourself to the median.

Why Net Worth Peaks in the 65–74 Range

Net worth typically peaks just before or at early retirement (65–74 age group), when households have completed their peak earning years, maxed out retirement savings, and often paid off their mortgage. After 75+, net worth tends to decline as households draw down retirement accounts, spend on healthcare, and transfer assets to heirs.

The Power of Compounding: Why Starting Early Matters

The jump from "Under 35" ($39,000 median) to "35–44" ($135,600 median) — a 3.5× increase in just one decade — illustrates how compounding accelerates wealth building in middle age. A 25-year-old who invests $500/month at 7% annual returns will have ~$1.3M by age 65. Delaying by 10 years (starting at 35) produces only ~$610,000 — less than half — even with the same total contributions.

What's Included in Net Worth?

The Federal Reserve SCF defines net worth as total assets minus total liabilities. Assets include: financial assets (retirement accounts, stocks, bonds, savings), primary residence, other real estate, vehicles, and business equity. Liabilities include: mortgage debt, student loans, auto loans, credit card balances, and other debt. For most middle-class households, home equity and retirement accounts represent the two largest components of net worth.