The average 50-something American is now worth $1.4 million

Want to get rich? Get old.

That’s what the data tells us about net worth in America.

The average 50-something American has a net worth of $1.4 million, according to a report from Empower, the financial services firm. The average 60-something is worth $1.6 million.

By contrast, the average 20-something is worth a mere $127,730.

The numbers are estimates, drawn from anonymized data for Empower users in October 2025. But they’re consistent with the findings of the federal Survey of Consumer Finances, a larger study that comes out every three years.

The last federal survey, in 2022, showed an average net worth of $1.1 million for Americans ages 50-54, and $1.4 million for ages 55-59.

Both reports show American households growing wealthier as they age – dramatically so, when you look across decades.

How did older Americans get so wealthy?

Financial experts cite three main factors: Stocks, homes, and time.

The S&P 500 has risen by 256% over the past decade, or about 13.5% a year, according to a Jan. 10 analysis by The Motley Fool.

“The explosion of the stock market over the past 20 years, even over the past three years alone: I’ve started to hear, ‘I never thought I would have this much,’” said Ryan Viktorin, vice president and financial consultant at Fidelity Investments.

And therein lies a key reason why so many Gen-Xers and boomers are millionaires. If a sum of money is invested in stocks, and they rise in value by 10% every year, it doesn’t take many years for the balance to multiply in value.

“The average portfolio tends to double every 7 to 10 years,” Viktorin said. “If you’re looking at a 40-year time period, that’s a lot of doubling.”

Home values, too, have risen substantially in the past decade.

Home prices don’t generally rise as quickly as stock values. But a home functions as an enormous piggy bank: When you take out a mortgage, you enter a years-long cycle of building equity with your payments and the gradual appreciation of your home’s value.

Homeownership rates rise with age, and older Americans are more likely to have significant equity in their properties.

Older Americans also build wealth through inheritance. Your cumulative chance of inheriting money rises with every decade of life.

“You think about people in their 50s inheriting homes, and they already have a home,” said Colin Day, a certified financial planner at Mercer Advisors in St. Louis.

Before we proceed into a detailed discussion of net worth by age, we should note one glaring discrepancy in the numbers: the difference between mean and median.

The average 50-something is worth about $1.4 million, according to Empower. But that’s a mathematical average, and the super-rich drive the number way up.

The “median” 50-something – imagine the middle number in a long list of numbers – is worth a more modest $192,964.

Here is a breakdown of net worth by decade:

Average net worth: $127,730

Median net worth: $6,689

Many Americans start their 20s in college, and many finish college with debt. Until they amass sufficient savings, their net worth is likely to be negative.

“Ultimately, in your 20s, it’s just about getting back to zero,” said Jonathan Swanburg, a certified financial planner in Houston.

Twenty-somethings may also be wrestling with car debt and credit card debt.

Financially speaking, the decade is mostly about “trying to get standing on your own two feet,” said Liz Gillette, a certified financial planner in Edgewater, Maryland.

Average net worth: $321,549

Median net worth: $24,508

Once upon a time, Americans expected to own a home in their 30s. No longer. In 2025, the median first-time home buyer was 40.

Many 30-somethings have small children. That means childcare.

“Undeniably, your expenses are going up in your 30s,” Gillette said.

On the plus side, as a 30-something, “you’re starting to get established in your career,” Viktorin said. “Maybe you’ve gotten a promotion or two.”

And 30-somethings have had several years to start building retirement savings.

“You don’t really have the power of compounding yet, but you are putting away your paychecks,” Swanburg said.

Average net worth: $770,892

Median net worth: $76,479

This is the decade of life “where the impact of compounding starts to show,” Gillette said.

A 40-something is entering peak earning years. Your children may be old enough to attend public school: Childcare expenses go down.

Even so, “most people at this point are still struggling,” Swanburg said. “They’re still trying to get that house downpayment. They’re trying to get their child’s expenses for travel baseball covered.”

Average net worth: $1.4 million

Median net worth: $192,964

This is when many Americans reach peak earning years. If you own a home, it may be your biggest asset.

“I think this is where people can see the impact of their real estate choices,” Gillette said.

You may be wrestling with college expenses. But you’ve now had 30 years to build retirement savings.

“Three decades into your career, that really starts to mean something,” Swanburg said.

Average net worth: $1.6 million

Median net worth: $290,920

Sixty-somethings have more wealth than any other age group, Empower data shows.

“This is your peak,” Gillette said.

Your 60s may be the decade when you pay off your mortgage. You may become an empty nester, which means fewer expenses.

Your 60s is also the traditional decade of retirement. You may start the decade earning as much as you ever have. By the end, you are probably collecting Social Security and drawing down your savings.

Average net worth: $1.5 million

Median net worth: $232,712

This is the decade when net worth typically begins to decline. You’ve probably stopped working. You’re spending down your savings.

But your net worth may not decline by much. With the stock market on its recent roll, many retirees have found that they can live off the returns.

“Anybody that has retired over the past 10 or 15 years has retired into an up market,” Viktorin said.

This article originally appeared on USA TODAY: Want to get rich? Get old. The average 50-something is now worth $1.4m