Median net worth varies widely by age group.
Gen X retirement: 45% face shortages
Retirement is supposed to be a golden age, but for many Gen Xers, it may not be.
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The average net worth of U.S. adults is $192,700, according to a new study from the Federal Reserve Board based on data released in 2022-2023. However, the averages for each age group vary widely, with older people unsurprisingly having higher net worth.
Generation X is generally defined as people born between 1965 and 1980, with the youngest members of this generation being in their mid-40s. With you at least a few years away from retirement and at your peak earning potential, now is the ideal time to increase your savings.
Everyone’s situation is different, so even if your net worth is lower than someone else’s age, it doesn’t necessarily mean you’re inferior. That being said, it’s still helpful to see where you stand among your peers.
Median net worth by age
The median is often more representative of the typical person, as the average can be highly skewed by some people with very high net worth.
According to 2022 Federal Reserve data, the median net worth for people ages 45 to 54 is about $247,000. The median net worth for people ages 55 to 64 is about $364,000.
Again, comparisons aren’t always helpful in this situation, as your savings goals are highly dependent on your age, cost of living, and priorities. For example, people who live in cheaper cities may not need to save as much for retirement as those who live in more expensive cities, and people who retire early are likely to need more savings to survive the rest of their lives.
If you’re looking to build your net worth, investing in the stock market is one of the easiest and most accessible ways to do so. Contributing consistently to a 401(k) or IRA can increase your net worth by tens of thousands of dollars or more in just a few years.
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