Your total net worth is your assets minus your liabilities. Your net worth is a good metric for identifying your financial health.

According to a recent Charles Schwab survey, Americans think it takes $2.30 million for a person to be “wealthy”. However, the average American does not generate the type of income to support the ideal of “wealthy”. In fact, $2.3 million is about 20 times the actual median net worth of U.S. households. Between the definition of bankrupt and wealthy is where most American’s net worth lies.

Outlined below is the average net worth broken down by age bracket. Where does your net worth fall when compared to your peers?  Note that the median (middle value) is a more useful measure than the average value (total divided by the number of households) since the very wealthy are so huge they skew the average.

Source: https://www.federalreserve.gov/publications/files/scf17.pdf
 

Average Net Worth by Your 30s

The financial decisions you make during your 30's will lay the groundwork for your future financial security. Establishing a budget, creating financial goals, and saving toward your future are all important pieces of your financial puzzle.

According to the Federal Reserve, the median net worth for U.S. households under age 35 was $11,100. It’s no surprise millennials have such a low net worth considering they’re carrying an average $36,000 in debt, according to the 2018 Planning & Progress Study.

If you are in your 30's and see room for improvement, these are the years you can use to springboard your finances toward success.  There are some simple thing you can. If your company offers a 401(k) or 403(b) plan and they provide a match program, consider boosting your contributions to meet the match amount.
 

Average Net Worth by Your 40s

Experts recommend you have at least double your annual salary amount in savings by the time you reach your 40s. For example, if you make $60,000 a year, you would want to have at least $120,000 in your savings accounts.

Consumers in their 40's boost their net worth by continuing to pay down debt and make consistent contributions to their retirement accounts. By your 40's, a good goal would be to automate your savings so you don't have to think about it. Hopefully, you have a steady income you can rely on that will help you build your net worth and give you the flexibility to invest for your future. Your 40's are the prime age that you can establish financial security with proper planning.

According to The Federal Reserve, the median savings was $59,800, while the average net worth was $288,700 for consumers aged 35 to 44. Keep in mind these number are great guidelines and they should help you understand where you stand against the households of your peers.
 

Average Net Worth by Your 50s

By the time you reach your 50s, you should begin considerably increasing your wealth. Your wealth should consist of retirement contributions, real estate investments, savings, and other investments of your choice. It’s recommended to have a net worth of at least four times your salary. So, if you make $100,000, you should have a $400,000 net worth.

During this phase of your life, you’ll want to ramp up your preparation for retirement. Even though it may be decades away, starting the preparation process now will help you better manage your finances. It will also give you some insight into the areas in which you can improve. For example, if you haven’t been maxing out your 401(k) or IRA contributions, this is a great time to identify ways you can increase your savings to meet these limits.

Also, your 50s are also a great time to put money toward some of your other goals, like saving for your children’s higher education with a 529 plan. However, it’s important to prioritize saving for retirement over other financial objectives. According to the Federal Reserve, the average net worth for Americans between the ages of 45 and 54 is $727,500, yet the median is $124,200.  Again this because the super rich skip the distribution.
 

Average Net Worth by Your 60s

Once you reach your 60s, it’s recommended to have a net worth of six times your annual income. Keep in mind, different financial situations require different bench marks. While having a net worth of six times your income may be a great goal, you may need more, or less, depending on your lifestyle requirements.

During your 60s, you’ll want to discover ways to cut costs while maximizing your investments. For example, you may discover you need to downsize your home and day-to-day spending. Determining ways to cut living expenses will help you maximize every retirement dollar you have.

The amount of money you have in your 60s will indicate how much money you’ll have in your golden years. According to the Federal Reserve, the average net worth for Americans between the ages of 55 and 64 is $1,167,400, while the median is $187,300.
 

Average Net Worth by Your Retirement Years

How much money do you think you’ll need in order to maintain your lifestyle in retirement? This question will help you determine your retirement number and the dollar amount you’ll need to live in retirement using our calculator. Let’s say you would like to maintain an $80,000 per year lifestyle in retirement. Assuming a 4% withdrawal rate, you would need $2 million in savings to achieve this cash flow.

You can also account for other sources of income such as Social Security. Keep in mind, the longer your delay your Social Security benefits this more your benefit amount will be. Maximizing all of your income streams will help you achieve the retirement you most desire.

According to the Federal Reserve, the average net worth for Americans between the ages of 65 and 74 is $1,066,000, however, the median net worth is $224,000.

The Bottom Line

A review of your net worth serves as a great method to observe your financial health and evaluate your success. Additionally, creating a consistent savings plan will establish a solid, lifelong routine. Regularly reviewing your net worth and contributing toward your retirement will help you monitor your progress toward your financial goals and assure you are remaining on track.

Using various techniques such as budgeting, financial auditing, and calculating your net worth enable you to have the most accurate gauge of how you are preparing for retirement. These habits will provide you with insight in case you need to take steps to improve. It’s important to think about your future financial needs from a young age so that you have adequate time to prepare for retirement.