Warning: Use of undefined constant ‘FS_METHOD’ - assumed '‘FS_METHOD’' (this will throw an Error in a future version of PHP) in /home/btcnewspaper/public_html/rayyesfinance.com/wp-config.php on line 83

Warning: Use of undefined constant ’direct’ - assumed '’direct’' (this will throw an Error in a future version of PHP) in /home/btcnewspaper/public_html/rayyesfinance.com/wp-config.php on line 83
Here's the Average Net Worth of Americans ages 75 and Up - Rayyes Finance and Market News
Daily Banking News

Here’s the Average Net Worth of Americans ages 75 and Up

Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.

The most recent Survey of Consumer Finances released by the Federal Reserve shows the median U.S. household net worth is $121,700, but for older Americans it’s over double that amount.

According to the Fed data, the median net worth peaks between ages 65 and 74 and then falls when retirees enter their late 70s and beyond. Americans ages 75 and up show a median net worth of $254,800. The average, which skews higher thanks to high-net-worth households, is $977,600.

Most people’s net worth starts to decrease during their non-working years. This decline is not surprising, given that most people live on a fixed income during retirement (usually a combination of social security and investment distributions). Retirees should make sure they have enough resources to last through their golden years.

Even better is to get an early start by saving and investing as soon as you start making money. Earning potential tends to peak in the decades leading up to retirement, according to salary data insights company Payscale. Data shows that women reach their peak earnings at the age of 44, earning on average $66,700, and men reach their peak earnings at the age of 55, earning on average $101,200 (not accounting for other variables like race and education level).

People should therefore plan ahead and invest while they are still making an income so that, when they retire, they can rely on retirement distributions to last through their non-working years.

Here’s a look at the average and median net worth by age in the U.S., according to the Fed.

Household net worth by age

Age of head of family Median net worth Average net worth
Less than 35 $13,900 $76,300
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

How net worth is calculated

Net worth refers to the total value of assets you own minus any liabilities or debts.

Net worth = assets – liabilities

In its study, the Federal Reserve lists several kinds of assets, including:

In calculating net worth, liabilities (aka debts) get subtracted from the value of assets amount. In the Fed’s survey, debts included: 

  • Mortgages
  • Home equity lines of credit or home equity loans
  • Credit card balances
  • Installment loans, including personal loans, auto loans and student loans

Need help tracking and growing your wealth?

Use a budgeting app to set clear goals and plan ahead for retirement. Here are our favorite picks:

Why net worth is important during retirement

The amount you save up for retirement becomes your income after you no longer earn a paycheck, making net worth a critical factor in how well you live.

According to retirement-plan provider Fidelity Investments, people should have the equivalent of 10 times their income put aside by age 67 to have a comfortable retirement. Based on the U.S. Bureau of Labor Statistics’ median American earnings data, this equates to roughly $514,280. However, it’s impossible to predict what the economy will be like exactly, so a safer bet is to aim for more (some say as much as $1 million) if you want to be as worry-free as possible when you age.

Yet the reality is that most Americans retire with less than $1 million in the bank. In particular, women currently are behind on retirement savings

Read More: Here’s the Average Net Worth of Americans ages 75 and Up

Get real time updates directly on you device, subscribe now.

Notify of
Inline Feedbacks
View all comments

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.