Average Net Worth by Age

Why medians beat averages here

Net worth data is extremely skewed: the top 10 percent holds most of the wealth, dragging every average far above the typical household. At nearly every age, the median household holds a fraction of the average.

When you see a headline average, mentally cut it substantially to picture the middle household. Then forget both numbers as targets and use the salary multiples below, which scale to your income instead of someone else's.

Benchmarks worth using

The Fidelity-style multiples work for net worth too: 1x gross salary by 30, 3x by 40, 6x by 50, 8x by 60, 10x by 67. A 45-year-old earning $80,000 targets roughly $320,000 to $400,000.

High-cost-city dwellers often trail on home-equity-adjusted measures early, then catch up. Business owners may look asset-rich but cash-poor. Benchmarks are guides; the trend of your own number is the real grade.

If you are behind

The two levers are saving more and owing less, in that order of reliability. Raising your savings rate 5 points does more over a decade than chasing an extra 2 percent of investment return.

Kill high-interest debt first: every dollar of 20 percent credit card debt erased is a guaranteed 20 percent return. Then automate investing so the surplus never sits in checking waiting to be spent. Measure quarterly and watch the line move.