How do you compare to peers when it comes to building a nest egg?
How much money are you worth? If you are the average American, the answer is more than $1 million.
If your own assets are much smaller than $1,059,400 — the average American’s net worth, according to financial services company Empower — don’t panic: You have a lot more company than you might think.
The concept of “average” can be highly misleading, because people with a ton of money or large amounts of home equity skew the average much higher. If you are sitting alone with Elon Musk, someone could legitimately say the “average” net worth of the two people in the room is well over $100 billion.
By contrast, the median net worth — which is the middle value in a set of data — is far more accurate. And by that measure, a typical American is worth $260,223.
Of course, the median varies widely depending on age. Recently, Empower analyzed data on its Empower Personal Dashboard. Based on that analysis, Empower says this is how much Americans are worth in every decade from their 20s to their 70s.
20s
This age group’s:
- Average net worth: $90,529
- Median net worth: $6,847
Even if you save only modest amounts, the money you put away in your 20s can have a profound impact on the quality of your retirement decades down the line.
For example, investing $5 a day might not sound like much to you. However, Money Talks News founder Stacy Johnson begs to differ:
“But invest $5 a day for 30 years and earn a 10% return on it, and you’ll end up with more than $300,000. That’s why learning to save a few bucks here and there and investing that money is so important.”
30s
This age group’s:
- Average net worth: $275,413
- Median net worth: $37,831
Most workers in their 30s are well into their careers and are starting to make better money. This is the age when many people get serious about investing and building a nest egg. They may also own homes which can help add to a person’s net worth.
40s
This age group’s:
- Average net worth: $723,419
- Median net worth: $137,656
Veteran workers in their 40s are moving into their prime earning years — and the jump in their net worth during this decade reflects that fact.
50s
This age group’s:
- Average net worth: $1,301,538
- Median net worth: $307,691
Most workers in their 50s have built a decent-sized nest egg and are starting to think about their retirement plans. However, there’s a share of people in this age group who have fallen far behind in the race to retirement.
60s
This age group’s:
- Average net worth: $1,635,471
- Median net worth: $478,274
Although seniors are more likely to work today than they were in the recent past, the majority of Americans still retire in their 60s. Even if they are no longer saving for retirement, a paid-off home might help boost a person’s net worth at this stage of life.
70s
This age group’s:
- Average net worth: $1,636,000
- Median net worth: $402,266
This is the time of life where net worth starts to decline after decades of growing. Most people in their 70s are well into retirement and that means they are drawing down the money they have saved over a working lifetime.