People in their 70s have often accumulated wealth from decades of employment, inheritances, and investments that benefit from compound interest. They've paid off their mortgage and are enjoying the full value of their home equity.
The average net worth for Americans 75 and older is $1,624,100, according to the Federal Reserve's 2022 Survey of Consumer Finances, the most recent year with available data.
Average net worth isn't the best measure of financial health, however, because a small number of super-rich outliers can skew the numbers. Median net worth is a more accurate accounting: The median net worth for a 75-year-old was $335,600, according to the survey.
| Age of head of household | Median net worth | Average net worth |
|---|---|---|
| Under 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: Federal Reserve Survey of Consumer Finances, 2022
That's a decline from the 65-to-74 demographic, which had an average of $1.79 million and a median of about $410,000. It's not too surprising, given how people 75 and older are often tapping their savings for living expenses, health care and other costs.
Across all demographics, the average net worth was $1.06 million, while the median net worth was $192,700.
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How net worth is calculated
Net worth is determined by adding up all your assets and subtracting any liabilities. According to the Federal Reserve, assets include:
- Cash in checking, savings and money market accounts
- Prepaid debit cards
- CDs and savings bonds
- Government bonds
- Health savings accounts
- 529 college savings plans and individual taxable investment accounts
- Retirement accounts, including IRAs, 401(k)s and 403(b)s
- Life insurance policies with cash value
- Annuities with equity
- Vehicles, including cars, motorcycles and boats
- Real estate, including rental homes and primary residences
Your liabilities are any outstanding financial debts, including:
- Mortgages
- Home equity lines of credit or home equity loans
- Credit card balances
- Installment loans, including car loans and student loans
How to track net worth
You don't need to obsess over your net worth, but it's a good idea to start tracking it early to ensure you have enough money in retirement.
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Empower
Cost
App is free, but users have option to add investment management services for a fee
Standout features
A budgeting app and investment tool that tracks both your spending and your wealth
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Data encryption, fraud protection and strong user authentication
Terms apply.
Why saving early is important for retirement
Once you no longer earn a paycheck, your savings become the bulk of your income. How much you need to retire comfortably depends on many factors, but a common strategy is to have 10 times your salary saved by the time you reach 67.
If you start with a salary of $62,192 (the median annual income in 2025), you'd be sitting on a little more than $620,000 when you reach full retirement age.
However, many workers expect to need upwards of $1.2 million to retire comfortably, according to a survey from investment management firm Schroders.
Could you live on what you've set aside? Experts say retirees should withdraw no more than 4% of their investments annually. Someone with $1 million in a brokerage account could withdraw $40,000 annually.
But a 75-year-old with $300,000 in retirement savings could only withdraw $12,000 per year, according to this rule, or $1,000 per month. Even if you've paid off your car and house and are receiving Social Security, $1,000 a month isn't a lot, especially when you factor in medical bills, home repairs and other unexpected expenses.
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