The Average Net Worth of Americans in Their 60s Is Much Lower Than You Think

By the time you hit your 60th birthday, you usually don't have much time left to save for retirement. Some Americans are already retired by that age, and others have just a few more years left.

As younger Americans continue to feel that their financial position is only getting worse, and older Americans prepare for a world where they won't be working anymore, it's natural to be curious about the average net worth of a person in their 60s.

While average necessarily reduce nuance, they can still be useful. Here's what we know about the average net worth of Americans in their sixties.

According to the Federal Reserve's 2022 Survey of Consumer Finances, the average net worth of Americans aged 55 to 64 is $1.57 million.

That report, released in October of 2023, is already a couple of years out of date, and inflation likely means that the average net worth of those people is higher now. Of course, that average also includes some people in their 50s.

That average is skewed, though, quite obviously, by incredibly high earners and billionaires. They raise the overall net worth of the pool substantially, so a more accurate reflection of their net worth might be the median net worth of people in that age bracket.

According to that same survey, the median net worth of a person from age 55 to 64 in America is about $364,000.

That might seem like a sizable sum, but it's important to remember that that number typically includes the accumulated savings 401K, etc., that a person has made over the course of their life, and that they'll come to rely on in retirement.

Depending on a person's current income, that could mean that some people will really have to squeeze in order to make a living on what they have saved.

If you're trying to plan for retirement and realize that you're short on time, the best thing you can do is consolidate your debt, per Bankrate. Consider selling your car and buying something cheaper if you're still making payments on it, or doing the same for your house.

You can also take advantage of catch-up contributions for IRA or 401 (k) accounts, which you're allowed to make after turning 50.

It's important to remember, though, that a person's net worth also includes things outside of their retirement accounts. If your net worth is tied up in your house, your cars, or other possessions, it's not all that valuable to you. That's especially true if you're planning for retirement.

What's most important is to build up accounts that you can rely on in retirement, even as you're also trying to enjoy the life you have while you're working.

Doing both of those things at the same time often means careful budgeting, but in the end, you're the one who gets to reap the rewards.