It’s no secret that keeping up with the Joneses is not the path to financial success. But as you reach age 55 and beyond, it’s normal to stop and look around at how you stack up against others in your age bracket, especially as retirement isn’t too far into the future.
Paying attention to certain financial statistics and benchmarks can help you determine if you’re financially fit or if you have some work to do. Here are signs that you’re doing better than the average American over 55.
Your salary is over $64,688
Income trends show that income typically increases as people age but reaches a cap around age 50 to 55.
The average salary for Americans age 55 is $64,688, but will likely decrease in the years after that. If you’re making over $65,000 per year at age 55, you're earning more than your average peers.
You have less than $7,500 in credit card debt
Surprisingly, credit card debt balances increase as people age — until age 74, when the number drops dramatically.
If you're an average 55-year-old American, you likely have around $7,500 in credit card debt. If you have less or no credit card debt, you’re doing better financially than the average American your age.
Your monthly mortgage payment is $1,392 or less
Housing is typically the biggest expense for each household, costing people about 26% of their monthly income.
If your mortgage payment is below $1,392, you're doing better than the average American over 55 — and most Americans in general.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Your credit score is over 705
A credit score between 690-719 is considered good. While the average score for 55-year-olds is 705, which falls into the “good” rating, having a higher score means more access to credit products and will probably get lower interest rates. And you’re doing better than the average American your age.
You have over $144,000 in home equity
According to 2020 Census data, the average person age 55 has $144,000 worth of equity in their home.
For many people, home equity is a big part of their retirement plan. If you’ve got this much equity — or more — stored up in your current home, you're doing better than your average neighbors.
Trending Stories
You’ve saved $537,560 or more for retirement
A study by the Bipartisan Policy Center found that 49% of Americans over age 55 say they don’t feel ready to retire.
The biggest concern is having enough money saved to sustain the type of lifestyle you’re looking forward to during retirement. Some people are even worried about running out of money completely.
Based on data from the 2022 Survey of Consumer Finances conducted by the Federal Reserve Board, the average 55-year-old has just over half a million dollars saved for retirement.
You can feel good about your savings efforts if your account balances for retirement are above that number.
Your student loan balance is below $45,159
With the Biden administration's attempt to alleviate student loan debt, student loans have been among the top headlines many times over the last couple of years.
Borrowers over age 50 carry a huge debt burden, owing an average of $45,159 in student loans. If you owe less than that, you're doing better than the average American.
Your net worth is over $364,270
According to a 2022 Study of Consumer Finances, the median net worth for individuals aged 55 to 64 is $362,270. Using the median rather than the true average removes high-earning outliers that skew the numbers higher.
To determine your net worth, subtract your debts and liabilities from your assets. What's left over is your net worth.
You inherited more than $14,237
The average inheritance for those in the 46-to-55 age bracket was just under $15,000. The majority of those who receive an inheritance get it from their parents. A smaller percentage of heirs receive gifts from their grandparents.
You're doing better than your peers if you're lucky enough to receive that amount or more.
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more. How to become a member today: You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement. Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal. If you’re over 50, take advantage of massive discounts and financial resources
You have a will
An estate plan directs what happens to your assets and finances when you die. Yet more than half of Americans over age 55 do not have a will, according to a study by Caring.com and AARP.
While a will may not affect you directly while you’re alive, it can seriously impact your loved ones when you’re gone. If you already have an estate plan, you're doing better than most people your age.
Bottom line
Comparing your progress with the average 55-year-old American can help you determine your financial strengths and identify any weaknesses.
Whether your goal is having financial stability or a stress-free retirement, monitoring these benchmarks can prove your hard work is paying off. While these statistics can be useful, they aren’t a replacement for professional financial advice.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.