Is a $1 million net worth good?

It depends on age and lifestyle. At 40, it’s exceptional. At 65, it supports roughly $40,000/year in spending under the 4% rule — comfortable but not lavish in high-cost cities. Context matters enormously.

How does home equity affect these benchmarks?

The Federal Reserve data includes home equity. If you strip it out and look only at financial assets (investments, cash), the medians drop dramatically — often by 50% or more for middle-age groups.

What’s the net worth of the top 1%?

According to the 2022 SCF, the threshold to be in the top 1% of U.S. household wealth is approximately $11.1 million in net worth.

Should I feel bad if I’m below the median?

No. The median includes home equity accumulated over decades, inheritance, and employer pension values. If you’re young, have student loans, or haven’t had high income, being below median is expected. Focus on your growth rate, not your ranking.

Do these benchmarks account for cost of living?

Not directly. A $300,000 net worth means very different things in rural Mississippi versus San Francisco. Regional cost-of-living adjustments matter — particularly for housing-heavy net worth.

Are retirement accounts included in net worth?

Yes, the Fed’s SCF data includes all retirement account balances (401(k), IRA, pension values) in net worth calculations.

What Is a Good Net Worth? Benchmarks by Age and Income

"Am I on track?" That’s the question behind every net worth calculation. Knowing your number is step one. Understanding whether it’s strong, weak, or somewhere in between requires context — specifically, benchmarks based on your age and what you earn. The Federal Reserve surveys American household wealth every three years. The results are illuminating, sometimes surprising, and always worth knowing.

Federal Reserve Data: Median vs. Average Net Worth by Age

The Fed’s 2022 Survey of Consumer Finances (the most recent) shows a stark gap between median and average net worth. The average is skewed upward by ultra-wealthy households; the median is a more honest picture of where most Americans actually stand.

Source: Federal Reserve Survey of Consumer Finances, 2022

Age Group	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	$364,270	$1,566,900
65–74	$409,900	$1,794,600
75+	$335,600	$1,624,100

These medians represent the midpoint — half of Americans in that age group have more, half have less. If your net worth exceeds the median for your age, you’re ahead of most of your peers.

📈The Wealth Gap in One Number

The top 10% of American households hold 67% of all wealth. The bottom 50% hold just 2.5%. Average net worth figures are heavily distorted by this concentration at the top.

Income-Based Benchmarks: A More Useful Framework

Age-only benchmarks miss a critical variable: income. A 40-year-old earning $150,000 should have a very different net worth trajectory than one earning $55,000 — both in total dollars and as a proportion of salary.

Target net worth by age and income (using Fidelity’s 1×–7× salary guideline)

Age	$50K Salary	$75K Salary	$100K Salary	$150K Salary
30	$50K	$75K	$100K	$150K
35	$100K	$150K	$200K	$300K
40	$150K	$225K	$300K	$450K
45	$200K	$300K	$400K	$600K
50	$250K	$375K	$500K	$750K
55	$350K	$525K	$700K	$1.05M

These targets are for retirement readiness, not absolute wealth. If you’re ahead of these numbers and financially secure, great. If you’re behind, you know exactly what needs to change.

What 'Good' Really Means at Each Decade

In Your 20s: Direction Beats Destination

A positive net worth at 25 is genuinely impressive given student loan burdens. The most important metric isn’t the dollar amount — it’s whether your net worth grew versus last year. Even $1,000 in growth is a win if you started at negative $40,000.

In Your 30s: The Compounding Decade

Your 30s are when compounding starts showing up. Every $10,000 invested at 32 is worth roughly $43,000 at 62 (assuming 6% average annual returns). Getting your 401(k) contributions right in this decade matters more than almost any other financial decision.

In Your 40s: Catch-Up Mode

Many people hit their 40s with less saved than they expected — kids, divorce, medical bills, career changes. The IRS allows 401(k) catch-up contributions starting at age 50 ($7,500 extra in 2025), but starting to push harder in your 40s gives that money more time to compound.

In Your 50s and 60s: Preservation and Planning

At this stage, the question shifts from 'how do I grow wealth?' to 'how do I protect it and make it last?' Asset allocation, sequence-of-returns risk, and Social Security timing all come into play. A net worth of $800,000 at 58 sounds great until you model a 25-year retirement at your spending level.

💡The 25× Rule for Retirement

Multiply your annual spending (not income) by 25. That’s roughly how much net worth you need to retire comfortably at 60–65 using the 4% withdrawal rule. Spending $60,000/year? Target $1.5 million in investable assets.

Net Worth by Education Level (2022 Fed Data)

Net worth by education level — Federal Reserve SCF 2022

Education Level	Median Net Worth	Average Net Worth
No high school diploma	$30,000	$201,400
High school diploma	$90,600	$440,100
Some college	$118,700	$507,600
College degree	$308,200	$1,517,900

Education correlates with net worth, but the relationship is far from deterministic. A skilled tradesperson who avoids lifestyle inflation and invests consistently can absolutely out-accumulate a college graduate burdened with six-figure student loans.

Find Out Where You Stand

Calculate your net worth and compare it to benchmarks for your age and income.

Open Net Worth Calculator →