When people measure financial success, they often point to their income or the size of their house. However, net worth is a much more accurate indicator of someone’s financial health. Knowing the average net worth by age in America can help you know where you stand in relation to others your age. It can also help you map out a plan to improve it in the future.
In this article, we’ll share information about net worth percentiles by age. We’ll also explain what net worth is, how to calculate net worth, why it matters, how to increase it, and mistakes to avoid.
How to Calculate Net Worth
Net worth is a calculation of your financial assets minus your financial liabilities. Knowing this number can help you determine your net worth by age percentile, which can help you determine whether or not you’re on track to reach financial goals, like planning for retirement.
Here is a list of common assets and liabilities to help you calculate your net worth along with an example net worth calculation.
List of Net Worth Assets
- Cash savings
- Retirement accounts (401(k), IRAs)
- Non-retirement brokerage accounts
- Real estate
- Cars
- Jewelry, art, and valuable collectibles
- Business ownership or equity in other businesses
List of Net Worth Liabilities
- Student loan debt
- Credit card debt
- Mortgage(s)
- Car loans
- Personal loans
- Home equity loans or HELOCs
- Money owed to family members or friends
Net Worth Calculation Example:
Once you calculate your net worth using the formula above, it’s helpful to know the average net worth by age percentile in America. That way, you can see how you compare to others in your age bracket. The point of knowing this information isn’t to make you feel better or worse than anyone else, but rather to help you know a data point.
Sometimes, knowing you are on track with others your age can bring relief, while knowing you are slightly behind can bring motivation.
Average Net Worth By Age in America
Every three years, the Federal Reserve completes a comprehensive survey called the Survey of Consumer Finances (SCF). These surveys provide data on numerous different financial topics, including income, net worth, assets, and events that caused significant economic impact, like the pandemic.
The most recent SCF spans 2019 – 2022 and provides the most comprehensive data and insights on family finances in the United States. The next SCF will come out in 2026. Using the data provided, you can get a glimpse of the median net worth by age group.
Median Net Worth vs Mean Net Worth
In the chart below, we’re including the median net worth rather than the mean or average net worth. That’s because the median is a middle ground and shows that about half of Americans in that age group have a net worth above the number, and about half have below the number.
Due to the number of extremely high net worth individuals, showing the average net worth would skew the data and not show a realistic number.
Median Net Worth By Age in America Data
Net Worth Percentile By Age in America
Knowing the median net worth is helpful, and digging deeper to break down the net worth percentile further can help you get a better sense not only of whether you’re above or below the median but what percentile you fall into.
Harness, a financial planning firm, analyzed the Federal Reserve data further to show the top 20% of net worth percentiles by age and the top 10%. Each number in the chart below is rounded. The median shown in the chart above represents the 50th percentile.
The Top 1% Net Worth Percentile By Age
The creators behind the website DQYDJ analyzed the Federal Reserve data to find out the net worth of the top 1% in America, broken down by age.
The data combines information from years ranging from 2020 to 2023. We have taken it and rounded the numbers for easier scanning. Keep in mind, these numbers are meant to be educational and might have a margin of error. To view the full data sets, you can download all of the survey files, charts, and Excel data on the Federal Reserve website.
Has Net Worth Increased in America?
Yes, the average net worth has increased in America. In fact, according to the Federal Reserve data, the median net worth increased 37% between the 2016 – 2019 data collection and the 2019 – 2022. Part of this is that the percentage of Americans who own homes increased, and housing value increased as well. Additionally, more families are investing in the stock market.
As of 2022, the median net worth of all Americans, combining age groups, is $192,900, and the average increased 23% to approximately $1,064,000. Again, the average net worth is skewed by the very high net worths of those in the top percentiles.
Why Does Net Worth Matter?
Knowing your net worth is important because it serves as a valuable financial tool. Your net worth isn’t a reflection of your self-worth or your ability to be what society deems as successful. However, knowing your net worth can help you understand your financial standing and determine whether you’re adequately prepared for retirement.
It can also help you measure financial trends, track your progress in paying off debt, and monitor stock market performance. In essence, knowing your net worth helps you understand your finances, identify areas for improvement, and plan for your financial future.
Is Net Worth More Important Than Income?
While the money you earn as your income is an excellent tool for increasing your net worth, a high income doesn’t necessarily equate to a high net worth. That’s because your net worth measures the assets you have in relation to the liabilities you have. In other words, it matters more how much money you keep and invest, more so than how much you make.
To put it another way, someone with a lower income who invests regularly and avoids lifestyle creep could have a higher net worth than a high earner with substantial liabilities, such as a larger home or significant expenses.
A good rule of thumb is to spend less than you earn each month in order to create enough cash flow to funnel towards long-term investments. Spending less than you own has numerous other benefits, too, like helping you stay out of high-interest debt, which can derail your net worth goals.
Does a Higher Net Worth Make You Happier?
New 2025 data from Empower shows that 74% of people said having more money would solve many of their problems. Additionally, over half of the people Empower surveyed believe money can buy happiness.
It’s true that more money can certainly alleviate stress and help cover big expenses. However, there is a limit. A widely circulated study in 2010 showed that money did improve happiness up to about $75,000 per year, but once people reached that income threshold, happiness plateaued.
New research, however, found that happiness rose with income rather than plateaued, but that for people who were unhappy to start with, more money might not improve their happiness levels after a certain point.
6 Ways To Increase Your Net Worth
If you’ve decided that you want to increase your net worth and create a better legacy for your family, here are some tips that can help.
Invest early
The earlier you invest, the better, thanks to the wonders of compound interest. To help explain how powerful compound interest is, here is a comparison of three investors who start investing in the market at different ages.
These investors all make a deposit of $500 per month, but they start at different times. This chart was created using the Early Investing Calculator from Fiscal Agents Savings & Investments and shows an 8% growth rate on investments.
Advantage of Early Investing Calculator
- Investor A: Starts investing $500/month at age 25 and stops investing at age 45.
- Investor B: Starts investing $500/month at age 35 and stops investing at age 65.
- Investor C: Starts investing $500/month at age 45 and stops investing at age 65.
Results
Investor A:
- Total Deposits: $120,000.00
- Growth: $164,499.53
- Estimated Value: $284,499.53
Investor B:
- Total Deposits: $15,000.00
- Growth: $41,641.61
- Estimated Value: $56,641.61
Investor C:
- Total Deposits: $10,000.00
- Growth: $12,880.98
- Estimated Value: $22,880.98
The image below is a visual comparison of these three investors. It shows that even though investors B and C invested for the same amount of time or longer than investor A, investor A still ended up with far more, even though they stopped investing at age 45.
That’s why it’s so important to start investing at a young age, even if it’s only a small amount like $50 or $100 per month, because it pays big dividends over time.
Prioritize Employer Match
If your employer offers a 401(k) match, invest at least up to the match. This is free money from your employer that could radically jumpstart your retirement. Each time you get a raise, consider adding 1% to 2% more to your 401(k) contributions. That alone, combined with employer matches, can help you prepare for your retirement years.
Avoid Lifestyle Creep
As you earn more money throughout your lifetime, it’s tempting to improve your lifestyle. As kids grow, your house might feel too small. As friends and family members acquire new things or newer cars, it can be tempting to get one too.
Although having small joys, traveling, and improving your home can bring immense value, significant lifestyle increases, like larger mortgages or fancier cars, can delay financial independence.
Learning to be content with what you have where you are, is one of the best ways to increase your net worth over time.
Limit High-Interest Debt
Compound interest can yield incredible investment results over time, as the charts above indicate. However, it can also work in reverse. Having high-interest debt, such as credit card debt, can cause debt to increase rapidly, especially if you only make minimum payments.
Additionally, every dollar you send to high-interest debt is a dollar that you’re not putting towards investments. The average credit card interest rate is about 21% as of February 2025. So, whenever possible, try to pay down high-interest debt and then maintain a life free from it.
Keep Track of Your Goals
Finally, regularly checking in on your net worth goals is one of the best ways to achieve them. Setting up systems that help you improve your net worth takes some time to maintain, but it’s worth it. Ideally, track your net worth on the first of every month. If you are married or have a long-term partner, tracking your net worth together can build camaraderie.
Ultimately, by paying attention to your net worth goals and tracking them, you’ll keep them at the forefront of your mind. This focus, motivation, and dedication can help you reach a higher net worth percentile as you age.
Bottom Line
Understanding your average net worth by age is a powerful way to measure your financial health and set realistic goals for the future. While income plays a role, it’s your net worth (what you own minus what you owe) that gives the clearest picture of your financial stability. By comparing your own numbers to the net worth percentile by age, you can see how you stack up and identify areas for improvement.
Whether you’re just starting your financial journey or planning for retirement, tracking your net worth regularly and making strategic moves like investing early, avoiding lifestyle creep, and limiting high-interest debt can help you climb the percentile ranks and build long-term wealth.
Related: How to Make a Million Dollars