Is 60 the new 40? Many Americans approaching the end of their sixth decade probably like the sentiment. However, in some ways, reaching 60 is a more important milestone than any other previous age. When you move past your 50s, you're on the home stretch toward retirement.
By age 60, individuals have little time left for retirement planning. That reality could cause some to be anxious about whether or not they have enough money saved. What is the average net worth for Americans at 60 -- and where do you stand?
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The wrong question
The publicly available net worth data includes age brackets rather than specific ages. For example, the Federal Reserve's 2022 Survey of Consumer Finances, published in October 2023, pegs the average net worth of Americans aged 55 to 64 at $1.57 million. It's probably safe to assume that the average has increased since 2022, though.
However, asking what the average net worth of Americans is at age 60 is the wrong question. Averages give a flawed financial picture because the ultra-wealthy skew the numbers. A better figure to compare your financial position against is the median net worth. While the average sums all net worth amounts and divides by the number of people, the median is the exact middle value. According to the Federal Reserve, the median net worth of Americans aged 55-64 in 2022 was roughly $364,000.
Ways to boost your net worth
How can you boost your net worth after reaching 60? One smart move is to reduce your debt. If you're still paying a mortgage on your home, you could consider downsizing (as long as doing so frees up additional cash to use for savings).
Another alternative is to take full advantage of employer 401(k) matches. You could also sock away more money in your IRA and/or 401(k) with catch-up contributions available to individuals age 50 and older.
Keep in mind, though, that you could have a lower net worth than the median yet still be more financially secure than other people with higher net worths. How? Net worth includes home equity, retirement accounts, and liquid assets (such as cash or savings accounts). Your neighbor could be "house rich yet cash poor" (i.e., home equity makes up a large percentage of their net worth) while you have a greater percentage of your net worth in your IRA, 401(k) plan, and cash.
