Median Net Worths -- Are You Ahead or Behind?

The goal of Free Money Finance is to help you grow your net worth. And while I've suggested ways to calculate and compare your net worth (see How to Compute Your Net Worth and Check Your Financial Progress, How to Compute Your Net Worth, How High Your Net Worth Should Be, and Be Sure to Do It Once A Year and How to Determine if You're Wealthy), I don't think I've ever shared official net worth numbers from the government. So here they are, the median net worths as well as the net worths for the top 25% and top 10% of people in the U.S. for various age categories:

Age: 20-29
Median Net Worth: $7,900
Top 25%: $36,000
Top 10%: $119,300

Age: 30-39
Median Net Worth: $44,200
Top 25%: $128,100
Top 10%: $317,800

Age: 40-49
Median Net Worth: $117,800
Top 25%: $338,100
Top 10%: $719,800

Age: 50-59
Median Net Worth: $182,300
Top 25%: $563,800
Top 10%: $1,187,600

Age: 60-69
Median Net Worth: $209,200
Top 25%: $647,200
Top 10%: $1,429,500

Source: Federal Reserve Board's 2004 Survey of Consumer Finances

A few thoughts on these numbers:

1. If you're above these levels for your age, it doesn't mean you're doing well. Just because you're 65 and have a net worth of $300,000 (almost 50% higher than the median) doesn't mean you're in good financial shape. In fact, it's more of a reflection on how little everyone else has saved.

2. These are broad age ranges, so your particular spot in them needs to be kept in perspective. For instance, someone who's 40 and has a net worth of $117,800 is much better off than someone who's 49 with the same net worth -- though this info lumps them in the same class.

3. I'm surprised how small the median net worths are at all the levels. Boy, we're not accumulating much wealth, are we?

4. My net worth is near the "top 10%" net worth for the age range ABOVE my actual age range -- and I'm at the low end on my personal age range, so I have several more years in this range before I bump to the next one. So I guess that means I'm doing ok. That said, I have a big retirement number to save up for, so I'm not satisfied with where I am.

So, where do you fall in your age group? Are you happy with it? What are you doing about it?

Comments

[Mike]

I'm a bit puzzled as to how the MSN article came up with their numbers, supposedly from the Federal Reserve Board's 2004 Survey of Consumer Finances. The FRB document has different age groupings (eq. 45-54) than what are given in the article.

I've left the link to the FRB that has the original document (click on "Mike" below). There's other interesting data in that document.

[Lord]

There are many people that still have secure defined benefit plans and thus do not have to save much, even though it is becoming more the exception than the rule. The value of these can dwarf the savings of those not endowed with them. I think a lot of defined contributers will find themselves envious. Alas, few have the option, and even if they do it may not be secure.

[Trent]

My net worth is above the median for my age range, after spending virtually my entire life with extremely poor fiscal skills. That's just... sad, actually, that so many younger people are in that bad of financial shape.

[Menard]

This might sound like a silly question :) Are these household figures? I'm married, so should I divide my household net worth by two before making the comparison?

[LivingAlmostLarge]

10% of my age range. The category above me I'm in the 25% almost top 10%, great considering we only started saving last year.

[karla (threadbndr)]

almost at top 25% of age group, but at the bottom of it agewise, so I've got some wiggle room. AND I don't live on the coast, so my house is not a huge part of my total net worth (ie, net worth = actual $ for the most part).

If you add in the value of my defined pension plan, and the income property I'll inherit someday, I'm solidly in the top 25%, closing in on top 10. But not counting THOSE eggs before they hatch, if you know what I mean.

[Zach]

Would these number be a good gauge for family net worth, or personal net worth only? If the later, what would be a good method of gauging family net worth?

[mysticaltyger]

I believe the net worth figures are for HOUSEHOLDS, not individuals.

Are these real statistics? I'm having a hard time believing these median networths are as low as stated...

[matt]

it doesn't matter how much you have... you need to consider how much you spend!