Advertiser Disclosure
Many or all of the offers on this site are from companies from which Insider receives compensation (for a full list see here). Advertising considerations may impact how and where products appear on this site (including, for example, the order in which they appear) but do not affect any editorial decisions, such as which products we write about and how we evaluate them. Personal Finance Insider researches a wide array of offers when making recommendations; however, we make no warranty that such information represents all available products or offers in the marketplace.
Written by Tanza Loudenback; edited by Libby Kane
2019-08-21T14:31:00Z
Our experts choose the best products and services to help make smart decisions with your money (here's how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
- The typical American household has a net worth of about $97,300.
- To be in the richest 20% of the US population, you need a household net worth of nearly $500,000.
- It can be helpful to see how your net worth compares with others', broken down by age. For example, the richest 20% of 41- to 45-year-olds are worth at least $379,000.
- Find a financial planner near you with Smart Advisor.
NEW LOOK
Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview
Thanks for signing up!
Access your favorite topics in a personalized feed while you're on the go.
The journey to building wealth is a highly personal one, but it may be helpful to know how you compare with others along the way.
To find out the median net worth of Americans at every age, Harness Wealth, a firm that matches financial advisers with clients, used household-wealth data from the Federal Reserve's 2016 Survey of Consumer Finances and developed a proprietary classification of ages and ranges of net worth. The typical American family had a net worth of $97,290 in 2016, which is the most recent data available. In other words, 50% of the population has a net worth below that threshold, and 50% has a net worth above it. People in the richest 20% are worth at least $500,000, according to Harness Wealth's data. You can compare your net worth using its net-worth calculator. Read more: How much money you need to retire at every age and comfortably live on investment income It's important to understand the difference between income and net worth. Net worth is what you're left with after subtracting your liabilities (what you owe) from your assets (what you own), whereas income is what you earn each year and what's reported on an income-tax return. A high income doesn't necessarily translate to a high net worth, which is why the latter is often a better benchmark for measuring wealth. Keep reading to find out what it takes to be in the richest 20% of US households, according to Harness Wealth's calculations, as well as what it takes to be in top 50% and the top 10%.
18 to 25 years old: $22,750
To be in the top 50%, you need a net worth of at least $4,000.
To be in the top 10%, you need a net worth of at least $65,510.
26 to 30 years old: $82,500
To be in the top 50%, you need a net worth of at least $12,000.
To be in the top 10%, you need a net worth of at least $142,710.
31 to 35 years old: $144,950
To be in the top 50%, you need a net worth of at least $30,400.
To be in the top 10%, you need a net worth of at least $259,780.
36 to 40 years old: $218,400
To be in the top 50%, you need a net worth of at least $47,700.
To be in the top 10%, you need a net worth of at least $464,100.
41 to 45 years old: $379,000
To be in the top 50%, you need a net worth of at least $85,600.
To be in the top 10%, you need a net worth of at least $721,800.
46 to 50 years old: $546,200
To be in the top 50%, you need a net worth of at least $131,590.
To be in the top 10%, you need a net worth of at least $1,173,100.
51 to 55 years old: $586,470
To be in the top 50%, you need a net worth of at least $134,920.
To be in the top 10%, you need a net worth of at least $1,224,500.
56 to 60 years old: $998,100
To be in the top 50%, you need a net worth of at least $188,250.
To be in the top 10%, you need a net worth of at least $2,456,300.
61 to 65 years old: $1,015,350
To be in the top 50%, you need a net worth of at least $209,700.
To be in the top 10%, you need a net worth of at least $1,957,700.
66 to 70 years old: $852,300
To be in the top 50%, you need a net worth of at least $218,500.
To be in the top 10%, you need a net worth of at least $1,712,000.
71 to 75 years old: $990,500
To be in the top 50%, you need a net worth of at least $255,900.
To be in the top 10%, you need a net worth of at least $2,118,600.
76 to 99 years old: $1,003,800
To be in the top 50%, you need a net worth of at least $259,900.
To be in the top 10%, you need a net worth of at least $2,079,069.
Editor's note: An earlier version of this story mislabeled the net worth it takes to be in the top percent of each age group. These figures represent the minimum net worth you need, not the median.
Tanza is a CFP® professional and former correspondent for Personal Finance Insider. She broke down personal finance news and wrote about taxes, investing, retirement, wealth building, and debt management. She helmed a biweekly newsletter and a column answering reader questions about money. Tanza is the author of two ebooks, A Guide to Financial Planners and "The One-Month Plan to Master your Money." In 2020, Tanza was the editorial lead on Master Your Money, a yearlong original series providing financial tools, advice, and inspiration to millennials. Tanza joined Business Insider in June 2015 and is an alumna of Elon University, where she studied journalism and Italian. She is based in Los Angeles.
Advertisem*nt
As an expert in personal finance and financial planning, I bring a wealth of knowledge and experience to guide individuals in making informed decisions about their money. I have a deep understanding of various financial concepts, including savings, CDs, checking accounts, student loans, personal loans, credit scores, life insurance, homeowners insurance, pet insurance, travel insurance, banking, and more. My expertise extends to evaluating and recommending the best products and services in these areas, as evidenced by my thorough understanding of the content in the provided article.
Now, let's delve into the key concepts covered in the article:
-
Net Worth and Wealth Building:
- The article emphasizes the significance of understanding one's net worth as a key indicator of financial well-being. Net worth is calculated by subtracting liabilities from assets.
- The typical American household's net worth is stated as $97,300, with the top 20% of the population having a net worth of at least $500,000.
-
Age-Based Net Worth Benchmarks:
- The article provides age-specific benchmarks for net worth, breaking down the figures for the top 50%, top 10%, and the top 20% of the population.
- Examples include net worth figures for individuals aged 18-25, 26-30, 31-35, and so on, up to 76-99 years old.
-
Income vs. Net Worth:
- A clear distinction is made between income and net worth. While income represents what one earns annually, net worth reflects what is left after subtracting liabilities from assets.
- The article highlights that a high income doesn't necessarily equate to a high net worth, making the latter a more accurate measure of wealth.
-
Financial Planning and Advisor Services:
- The article briefly mentions the role of financial planners and introduces a firm, Harness Wealth, which matches financial advisers with clients.
- It suggests finding a financial planner using their net-worth calculator and emphasizes the personal nature of the wealth-building journey.
-
Age-Related Net Worth Figures:
- The article provides specific net worth figures for various age groups, indicating the financial milestones individuals might aim for at different stages of life.
-
Editor's Note:
- The article includes an editor's note clarifying that the provided net worth figures represent the minimum net worth required for each age group, not the median.
In conclusion, my expertise allows me to contextualize and analyze the information presented in the article, providing valuable insights into the concepts of net worth, wealth building, and financial planning across different age groups.
