Here's the Average Net Worth for Americans at 65 -- Where Do You Stand?
Key Points
The average 65 to 74-year-old American has a seven-figure net worth.
But investors shouldn’t conflate those numbers with liquid net worth or median net worth.
- The $23,760 Social Security bonus most retirees completely overlook ›
Many Americans plan to retire by the age of 65. So if you're approaching that age, you might be wondering how you stack up to other potential retirees.
According to the latest Federal Reserve Survey of Consumer Finances, 65- to 74-year-olds in America have an average net worth of $1.78 million and a median net worth of $410,000. That sounds like enough to retire on, but those headline numbers don't really tell the whole story.
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What don't those numbers tell us?
First of all, an individual's net worth is the value of their assets (including their home, cars, investments, and bank accounts) minus their liabilities. However, some of those assets -- such as a home or car -- aren't liquid and significantly inflate an individual's net worth. Therefore, a better gauge of an individual's financial health is their liquid net worth -- or the value of all of their cash, investments, and other cash-convertible assets.
Second, the huge difference between the average and median net worth highlights America's expanding income gap. The country's more affluent households skew the average higher, making it seem like most retirees have seven-figure savings when they don't.
While it might be interesting to compare your net worth to the nationwide average, such comparisons aren't very useful for planning your retirement. Instead, you should simply see if you have enough savings to cover your planned retirement lifestyle.
The $23,760 Social Security bonus most retirees completely overlook
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