What Is the Net Worth of People at Retirement Age
The net worth of people at retirement age is typically measured for households aged 65 and older. The Federal Reserve's Survey of Consumer Finances and related datasets show that the median net worth for U.S. households led by someone aged 65 or older is around 400,000 dollars, while the average is higher because of a small number of very wealthy households. For the top percentile of retirees, net worth can exceed several million dollars, driven by real estate, business ownership, and investment accounts. Forbes breaks down average and median net worth by age with 2024 benchmarks.
Net worth equals assets minus liabilities, so the headline figure includes home equity, retirement accounts, bank deposits, and investments, minus mortgages, consumer debt, and other obligations. For many households at retirement age, the primary residence is the largest single asset, while mortgage debt is the most common liability. Financial planners often focus on liquid net worth, which excludes the value of a primary home, to better reflect retirement readiness and cash flow flexibility.
How Retirement Net Worth Compares Across Age Groups
Compared with younger adults, households at retirement age usually have higher net worth because of decades of saving, compounding investment returns, and home equity accumulation. The Federal Reserve data show that the median net worth rises sharply between ages 55 and 65, then flattens or declines slowly as retirees draw down savings. By contrast, households in their 30s and 40s often carry higher debt relative to assets, which keeps their net worth lower even if their income is rising.
Within the 65-and-older cohort, net worth varies widely by race, education, and prior business ownership. Households led by college graduates or business owners tend to have higher averages, while many retirees rely heavily on Social Security income and modest investment withdrawals. The Federal Reserve regularly publishes consumer finance data used to benchmark retirement net worth.
What Assets and Liabilities Drive Net Worth at Retirement Age
The largest contributors to net worth for people at retirement age are typically home equity, retirement accounts such as 401k and IRA balances, and non-retirement investment accounts. Real estate, including rental properties and second homes, can add significant value for some households, while defined-benefit pensions and annuities provide income that is not always captured in net worth calculations. Forbes Advisor outlines how retirement account balances and real estate shape net worth after 65.
Common liabilities that reduce net worth at retirement age include remaining mortgage balances, credit card debt, medical bills, and co-signed loans for children or grandchildren. Healthcare costs are a key driver of out-of-pocket spending, and long-term care expenses can erode net worth quickly if they are not insured or planned for. Forbes Advisor explains how Medicare coverage and out-of-pocket costs affect retiree finances.