What Is the Average Net Worth of a 50-Year-Old?

The typical American household led by a 50-year-old has an average net worth of $897,663, according to Federal Reserve data. This stage of life underscores the importance of consistent wealth-building efforts. Comparing net worth benchmarks by age can serve as a useful reference point for assessing your financial standing. By implementing strategic planning and maintaining financial discipline, you can work toward growing your assets, managing debt effectively and surpassing average net worth milestones. Consulting a financial advisor can provide valuable insights into your current net worth and help you develop a plan for continued growth.

What Is Net Worth?

Your net worth is the value of all of your assets, minus your liabilities. Assets include bank accounts, investment accounts, home equity, vehicles, valuables and other property. Liabilities comprise all debts you owe, including mortgages, student loans, credit card balances and personal loans.

To calculate your net worth, add up all your assets and subtract your total liabilities. The result provides a snapshot of your current financial position.

Average Net Worth of a 50-Year-Old

The Federal Reserve’s 2019 Survey of Consumer Finances broke out net worth by age and found the average net worth of a household headed by a 50 to 54 year old is $897,663. This outpaces the average net worth of all U.S. households, which is about $748,800.

Net worth generally increases with age, as careers progress and workers have longer to build wealth. By age 60 to 64, average net worth climbs to $1,187,730. At age 70 to 74, it peaks at $1,250,679, before declining in later years as households draw down their assets.

The median net worth of those 50 to 54 years old is lower at $171,360. The median provides a better standardizing wealth metric than average because average is skewed upward by high-net-worth households. The median net worth of those 50 years old is also well above the $121,700 median figure for all American households.

Why Net Worth Matters

A woman comparing her net worth with the average net worth in her age group.

Monitoring your net worth over time is a key indicator of financial stability and progress. An increasing net worth suggests your assets are growing at a faster pace than your liabilities, while a stagnant or declining net worth may signal the need for financial adjustments.

Wealth accumulation requires consistent saving, strategic investing and debt management over the years. Net worth benchmarks by age serve as useful reference points to assess your financial trajectory. If your net worth falls significantly below the average for your age group, it may be time to refine your financial strategy to stay on track.

While income covers daily expenses, net worth represents long-term financial security. Assets that generate income can help sustain your lifestyle in retirement when paychecks stop. A higher net worth also provides a financial buffer for unexpected expenses and major life costs, such as higher education or long-term care.

Boosting Your Net Worth

Net worth varies by some factors that are not under your control, such as ethnicity and inheritance. However, it is also a product of good decisions and financial discipline. Actions you take throughout your career and into retirement can steadily build your net worth over time. Some of these include:

Maximize contributions to workplace retirement plans like 401(k)s, especially if you get an employer match. Make catch-up contributions if over 50.
Open an IRA and save the maximum yearly amounts. Consider a Roth IRA for tax-free growth.
Invest in a diversified portfolio including stocks, bonds and real estate. Let compound growth go to work.
Avoid racking up credit card debt and high-interest loans. Pay down debts swiftly.
Buy a home if affordable and steadily pay down your mortgage. Home equity is often a top asset.
Start saving for college when your kids are young. Pay tuition with savings rather than loans when possible.
Draft powers of attorney and healthcare directives. Make an estate plan to preserve wealth for heirs.

Bottom Line

A woman strategizing to increase her net worth after looking at the average for her age group.

By age 50, the average American household has a net worth of $897,663, demonstrating the potential to accumulate significant assets over time. Regularly tracking your net worth offers valuable insight into your financial progress. By consistently saving, investing wisely and managing debt effectively, you can work toward matching or exceeding the average net worth for your age group. If your net worth falls well below the average, it may be a sign to reassess your financial strategy and take proactive steps to build long-term stability.

Financial Planning Tips

Consult a financial advisor today to get personalized advice on growing your assets, managing debts and beating net worth medians as you progress through each stage of life. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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