Here's How the Average Retiree's Net Worth Has Changed in 20 Years (How Do You Compare?)

Older households have more wealth than their counterparts did roughly 20 years ago, even after inflation. The Federal Reserve's 2025 Survey of Consumer Finances, released October 9, 2026, puts the increase in median net worth at about 32% for households ages 65 to 74 and 80% for those 75 and older, compared with 2004.

That doesn't mean everyone is sitting on a comfortable retirement fund. The averages approach $2 million, but the typical household has considerably less, and some of that wealth is tied up in a home. Here's what the numbers reveal about how well you've prepared for retirement.

The comparison accounts for inflation

The Fed conducts this survey every three years, making 2004 the closest available comparison to two decades before 2025. Every dollar figure below is expressed in 2025 dollars, including the older balances. That keeps inflation from making wealth growth look bigger than it really was.

These are household-level figures grouped by the age of the reference person. They include people who are still working, so they describe retirement-age households rather than retirees exclusively.

Both older age groups have gained wealth since 2004

The Fed's historical tables show higher median and average wealth for both groups. The median for households ages 65 to 74 increased about 32% after inflation. For those 75 and older, it increased 80%.

The averages grew faster: roughly 60% and 116%, respectively. Those larger increases suggest that looking only at the average could overstate how much the typical household's position improved.

Households ages 65 to 74 recently lost ground

The longer-term gain doesn't mean wealth rose steadily. Between the 2022 and 2025 surveys, median net worth for households ages 65 to 74 fell about 4%, from $448,600 to $431,300.

Their average net worth also slipped about 3%, to approximately $1.90 million. That's around 4.4 times the median. If your own balance sheet looks nothing like that average, you're hardly alone. A relatively small number of very wealthy households pull it upward.

Households 75 and older saw a sharp increase

For households 75 and older, median net worth rose approximately 37% between surveys, reaching $504,900. Average wealth increased about 10% to $1.96 million, nearly four times the median.

The Fed primarily attributes this group's wealth increase to rising retirement account values. Still, these surveys compare groups at different points in time. They don't mean that the same individual retirees each enjoyed a 37% increase in their wealth.

Rising home values helped build wealth

Housing appreciation helps explain the longer-term increase. Someone who bought a home decades ago may now own an asset worth considerably more, while years of mortgage payments have reduced what they owe.

The path included the housing crash and recovery, followed by particularly strong price growth during the pandemic. Federal housing data document that uneven history. Where you bought, when you bought, and whether you kept the home all affect how much of that growth reached your balance sheet.

Stock market gains lifted investment accounts

The long stock market recovery after the financial crisis, followed by additional periods of strong gains, also helped households with investments. Historical S&P 500 returns show substantial growth across much of this period, interrupted by some painful declines.

Those gains could reach retirees through brokerage accounts, IRAs, and workplace retirement plans. But households with little invested had less opportunity to benefit. Someone relying mostly on Social Security wouldn't necessarily feel better off just because stocks had a strong year.

A pension and a 401(k) count differently

The shift toward 401(k)s makes the comparison trickier. The Fed includes retirement account balances in net worth, but it generally leaves out the value of future traditional pension and Social Security payments.

Someone with a pension could therefore look less wealthy than someone with a large 401(k), even if that pension covers much of their monthly spending. A bigger account balance doesn't automatically mean a more comfortable retirement.

Home equity isn't money in your checking account

Net worth means assets minus debts. Suppose your home is worth $400,000 and you owe $100,000. That contributes $300,000 to your net worth, regardless of how much cash you have available.

The equity is real, but spending it generally requires selling or borrowing against the property. Selling means arranging somewhere else to live; borrowing brings costs and repayment obligations. A household with substantial home equity could still struggle to cover groceries or an unexpected repair.

The median offers a more useful comparison

The median is the middle household: Half have more wealth and half have less. Unlike the mean, it isn't pulled sharply upward by a few enormous fortunes. That makes it the better starting point for comparing your finances with a typical household your age.

Even then, it's a benchmark, not a retirement requirement. Your housing costs, pension income, debts, and accessible savings matter more than whether you finish above or below someone else's number.

Bottom line

Older households have more wealth than they did roughly two decades ago, but the nearly $2 million averages don't describe most retirees. The median gives you a more useful comparison. Even then, a house, a retirement account, and cash in the bank serve different purposes.

If you're trying to grow your wealth, compare your own numbers at the same point each year, too. A consistent record makes it easier to see whether you're adding savings or mostly benefiting from rising asset prices. The national median offers context; your own progress tells you more about whether your finances are improving.

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