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Every three years, the Federal Reserve Board issues the Survey of Consumer Finances to share information about family net worth and income in the U.S.
The most recent report released in September 2020 (using data collected in 2019) shows the median U.S. household net worth is $121,700 — but it's more than double that for people ages 65 to 74.
According to the Fed data, the median net worth for Americans in their late 60s and early 70s is $266,400. The average (or mean) net worth for this age bracket is $1,217,700, but since averages tend to skew higher due to high net-worth households, the median is a much more representational amount.
While $266,400 may seem like a lot of money at first, people in their 60s usually start tapping into their net worth to cover living expenses in retirement. When planning for your non-working years, it's important to understand how net worth works and how it relates to living on a fixed income.
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Average and median net worth by age
Here's a look at the average and median net worth by age in the U.S., according to the Fed. As you can see, net worth tends to peak for most American during the decade after age 65.
Household net worth by age
| Age of head of family | Median net worth | Average net worth |
|---|---|---|
| Less than 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: The Federal Reserve Survey of Consumer Finances, published October 2023
Net worth considerations for retirement-aged people
When you're still working, it's normal to put your net worth out of your mind, at least long enough to take care of more pressing household duties like paying the bills, saving up for future expenses like a house or college education and keeping up with home and car repairs. It may seem like another paycheck is always just around the corner, or that you could pick up a side gig if cash flow is tight.
Unfortunately, many Americans fall behind on their retirement savings as they struggle to keep up with all the various everyday expenses required to make ends meet.
According toretirement-plan providerFidelity Investments, people should have the equivalent of 10 times their income put aside by age 67 to have a comfortableretirement. This means most people should build up a net worth of about $514,280 based on the U.S. Bureau of Labor Statistics'median American earnings data, though some experts suggest you actually need$1 million or more to retire comfortably.
Ahead, we look at exactly what makes up a person's net worth, so you can make sure you're covered in retirement.
Read more
Here are the states with the highest and lowest average retirement savings
What makes up net worth?
Net worthis simply the total value of assets you own minus any liabilities or debts. In its study, theFederal Reservelists several kinds of assets, including:
- Cash within bank accounts, such as checking,savings,money market accounts, etc.
- Prepaid debit cards
- CDs and savings bonds
- Government bonds
- Health savings accounts
- Investment accounts including529 college savings plansand individual taxable investment accounts
- Retirement accounts, including IRAs,401(k)sand 403(b)s
- Life insurance policieswith cash value
- Annuities with equity
- Vehicles including cars, RVs,motorcycles, boats and helicopters
- Real estate, including rental homes and primary/residential homes
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 creditor home equity loans
- Credit cardbalances
- Installment loans, including personal loans,auto loansand student loans
How to calculate net worth
Net worth = assets - liabilities
Tips for navigating debt in retirement
While many financial experts recommend saving at least 10 to 20% of your income throughout your working years, the reality is most people have trouble saving up enough for retirement.
On top of the struggle to save, a surprising number of Americans are still carrying some form of debt even after they retire, which could be cutting into their net worth despite a lifetime of putting money away. A survey by theTransamerica Center for Retirement Studies found that up 46% of retirees had consumer debt not related to a mortgage, including 14% of respondents who had $10,000 or more.
If quickly paying off debt is impossible with a fixed retirement income, consider how to manage it comfortably. Some retirees may want to downsize or refinance their mortgage, which can free up money for everyday living expenses and allow them to pay off more high-interest debt. Make sure to do your research and even consider speaking to a financial advisor before you do.
Meanwhile, if you're overwhelmed trying to pay off high-interest debt that seems to grow daily, consider the popular avalanche method to knock out the balances with the highest interest rates first. With a limited-time promotional 0% APR, a balance transfer card may allow you to pay no interest on existing debt for up to 21 months. Some of the best balance transfer cards include the Wells Fargo Reflect® Card, theCiti Simplicity® Cardand theU.S. Bank Visa® Platinum Card.
Wells Fargo Reflect® Card
On Wells Fargo's secure site
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.
Regular APR
18.24%, 24.74%, or 29.99% Variable APR on purchases and balance transfers
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees. Terms apply.
Citi Simplicity® Card
Learn More
On Citi's Secure Site
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening.
Regular APR
19.24% - 29.99% variable
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees. Terms apply. Read our Citi Simplicity® Card review.
U.S. Bank Visa® Platinum Card
Learn More
Information about the U.S. Bank Visa® Platinum Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% for the first 18 billing cycles on balance transfers and purchases
Regular APR
18.74% - 29.74% (Variable)
Balance transfer fee
An introductory fee of either 3% of the amount of each transfer or $5 minimum, whichever is greater, for balances transferred within 60 days of account opening. After that, either 5% of the amount of each transfer or $5 minimum, whichever is greater
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees. Terms apply.
Alternatively, if you have a big balance and need more time to pay it off, it could be worth considering a personal loan to refinance your credit card debt. Some of Select's top picks for refinancing debt include SoFi Personal Loans because of its lack of fees and low interest rates and Marcus by Goldman Sachs Personal Loans for its ability to pay creditors directly.
SoFi Personal Loans
Annual Percentage Rate (APR)
8.99% - 29.49% when you sign up for autopay
Loan purpose
Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses
Loan amounts
$5,000 to $100,000
Terms
24 to 84 months
Credit needed
Good to excellent
Origination fee
No fees required
Early payoff penalty
None
Late fee
None
Terms apply.
Marcus by Goldman Sachs Personal Loans
Annual Percentage Rate (APR)
6.99% to 24.99% APR when you sign up for autopay
Loan purpose
Debt consolidation, home improvement, wedding, moving and relocation or vacation
Loan amounts
$3,500 to $40,000
Terms
36 to 72 months
Credit needed
Good
Origination fee
None
Early payoff penalty
None
Late fee
None
Terms apply.
Need to get your retirement back on track?
Whether you're plagued with chronic overspending or just unsure of exactly how much you'll need to retire, using a budgeting app to set (and keep) clear goals can help you plan ahead for retirement.
Here are Select's favorite picks:
- Best overall free app: Mint
- Best app for serious budgeters: You Need a Budget (YNAB)
- Best app for over-spenders: PocketGuard
- Best app for investors: Empower
- Best app for couples: Honeydue
Read more
Here's what happens to your credit card debt when you die
Experts say you should have 10 times your income saved to retire by age 67—here’s what to do if you aren’t yet there
The silent generation has an average of $12,869 in nonmortgage debt—here's how they compare
Men have over 3X more retirement savings than women—7 steps to make sure you are financially secure
Information about PocketGuard has been collected independently by CNBC Select and has not been reviewed or provided by PocketGuard prior to publication.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
