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How the Average Retiree’s Net Worth Stacks up Against 10 Years Ago

How does your net worth compare to that of today's retirees?

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Nov. 4, 2026

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Recently, the Federal Reserve released its latest survey that reveals data about Americans and their personal finances. It's called the 2025 Survey of Consumer Finances (SCF). The survey covers a range of financial topics, and included in that is net worth. Your net worth includes the total value of your assets, like your home and the money in your retirement plan, minus any debts, such as a mortgage or credit card debt.

What the data showed is that retirees today are faring better than they were a decade ago. However, how much someone has in retirement really depends on what they've saved and how much they spend.

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The results of the 2025 Federal Reserve survey

The most recent Federal Reserve survey shows data collected in 2025, but the Federal Reserve released its findings in late 2026. In 2025, the median net worth for households headed by someone aged 65 to 74 was $431,300, and the average was $1.9 million. The median for households headed by someone aged 75 and up was $504,900, and the mean was just under $2 million.

The median is a more accurate representation of the average American because it shows the point where half of retirees have higher net worth and half have lower net worth. The average tends to be brought up by high net worth individuals, so the median is typically a better indicator of how much a typical American retiree has.

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What the 2016 survey says about retirees' net worth

In 2016, the Federal Reserve survey showed that families with a reference person aged 65 to 74 had a median net worth of $224,100, and families with a reference person aged 75 or older had a $264,800 median net worth. The average net worth of those two age groups was approximately $1.1 million.

If you adjust for inflation by using the Federal Reserve's inflation adjustment factor, the 2016 numbers for ages 65 to 74 would be closer to a median of $302,490 and an average of $1.44 million in 2025 dollars. For ages 75 and older in 2016, adjusted for inflation, the median would be $357,427, and the average would be $1.44 million.

What the results mean for net worth trends today

When comparing the numbers between 2016 and 2025, it shows that both the median and the mean net worth of both age groups had large increases. However, the growth wasn't linear. Data from the 2022 Federal Reserve survey revealed a dip in net worth from 2022 to 2025 for those aged 65 to 74 but an increase in net worth for those aged 75 and older.

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Rising home values have contributed to net worth growth

Home prices have grown significantly since before 2016. This is one of the main reasons retirees who are homeowners have seen a major spike in net worth. Retirees can access their home equity by downsizing and using the leftover cash to help fund their retirement, or by borrowing against their homes, though there are risks to using your home as collateral to borrow money.

Stock market growth also helps increase net worth

In addition to home prices rising, the stock market has also performed well over the past decade, despite a few years of lower returns. Overall, since 2014, the Motley Fool estimates the S&P 500 showed on average 12.8% growth annually from 2014 to 2024.

Why net worth tends to drop in your retirement years

Many people save for decades to be able to retire. However, once they reach retirement age, they start withdrawing from their retirement accounts. Because of those withdrawals, net worth tends to level out or drop as people age.

How much your net worth drops depends on how much you withdraw relative to how much your investments compound. Additionally, how much you spend in retirement matters as well, since many retirees have to spend more on healthcare as they age.

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What to do if your net worth is below average

Ultimately, if you've compared your net worth against the average or median net worths for your age bracket, and you feel like you're financially behind, there are steps you can take. First, take a close look at your retirement income and your expenses. Identify places where you could cut back or save. If your expenses far exceed your income, consider bigger moves, like downsizing or moving to a more affordable city.

Another helpful step is to eliminate high-interest debt if possible. Because credit card debt compounds rapidly due to the high interest rates, eliminating it can help to free up cash flow during your retirement years. To reach this goal, retirees may have to work a part-time job, sell belongings, or cut spending on extras temporarily until the debt is paid off.

Bottom line

The data shows that retirees overall are wealthier today than they were a decade ago. However, that doesn't mean that all retirees are comfortable. If you've made financial mistakes in the past and you're not sure how to increase your net worth in retirement, speak with a financial planner who can help you.

FAQs

Does Social Security count toward a retiree's net worth?

Future Social Security payments generally aren't included in standard net worth calculations. However, benefits already received and saved in a bank account count as assets. Monthly benefits also matter when assessing whether your retirement income can cover your expenses.

Is net worth the same as retirement savings?

No. Net worth includes assets such as home equity, retirement accounts, other investments, and cash, minus debts. Retirement savings are only part of that total, so a $500,000 net worth doesn't necessarily mean you have $500,000 available to spend.

How can I tell whether my net worth is enough for retirement?

Start with your spending needs rather than a national benchmark. Subtract reliable income, such as Social Security and pension payments, from your expected expenses. Then assess whether your savings can cover the remaining gap over your retirement, allowing for inflation and unexpected costs.

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