There are two ways to look at your net worth by age. The first is to measure your wealth against the median wealth of your age group and peers. This can be modestly helpful as a benchmark, but by and large it tells you nothing about your own needs.
The far more helpful approach is to consider your own financial goals. What do you need to build the life you want, and to afford your own lifestyle in retirement?
At age 35, you still have a lot of flexibility in your net worth. Unlike many other age groups, there really isn’t a “should” for people in their 20’s and mid-30s, and you can even afford a comfortable retirement if you have nothing saved up at all. Talk to a financial advisor to start making a personalized financial plan.
Median Net Worth
We can use the median household as a benchmark for measuring net worth.
U.S. Census Bureau data uses age 35 a hinge. For households 35 and under, the median net worth is about $22,000 according to the most recent data from the .Households age 35-44 have a median net worth of about $97,740. While this data doesn’t necessarily reflect what someone might have in a specific year, it does suggest that either or both the power of compound interest and career progression have a large impact on net worth over time.
This means starting to implement healthy financial strategies today can have an outsized return for your future.
Compare Your Net Worth to Your Goals
Again, median numbers may not be particularly helpful for your personal circ*mstances. For example, a doctor who couldn’t even enter practice until age 28 with $200,000 in debt may have a net worth still in the red at 35, but he can more than likely overcompensate in the long run thanks to his compensation.
The point is, you should measure your net worth by your own, individual situation. What your net worth should be depends entirely on what you have and what you, personally, need.
When it comes to retirement, the net worth that you should have at age 35 depends on the retirement you want to afford. The more money you will want at age 67, the more money you need to have at age 35. There are a number of ways to measure this.
Overall, the rule of thumb is to judge by your salary. Typically, by the time you enter retirement you want to have 10 times your annual salary saved up in your retirement fund. One common benchmark is to have two times your annual salary in net worth by age 35.
So, for example, say that you earn the U.S. median income of $74,500.This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings. This will keep you on track with ordinary benchmarks.
However, you can also judge this by doing the math on what you need to save each month to reach your goals. In that case, your benchmarks can be much lower. In fact, your net worth at age 35 can be nothing at all.
Say that you are looking to save the benchmark $740,500. You contribute 10% of your income each month to your retirement account, for an annual contribution of $7,450 per year. You have this money held in an S&P 500 index fund earning the market’s historic average of 10% annual returns. You are 35 years old with nothing saved at all and you intend to retire at full retirement age of 67.
Based on this profile, you will have $1.79 million by the time you retire.This is not only more than you need, it is plenty of money to afford a very comfortable retirement.Talk to a financial advisor today to build a plan to grow your net worth.
Bottom Line
Your net worth by age 35 will help you continue saving for your future. What you should have on hand depends entirely on your personal financial goals, but at this age there is still a lot of room for flexibility.
Retirement Savings Tips
- The best way to make plans is with specific numbers. Use SmartAsset’s retirement calculator to figure out what you need and how you can plan your savings to reach your own retirement goals.
- A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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FAQs
One common benchmark is to have two times your annual salary in net worth by age 35. So, for example, say that you earn the U.S. median income of $74,500. This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings.
How much money should I have saved by the age of 35? ›
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary.
How much does the average 35 year old have? ›
The average savings for individuals under 35 is $11,200. Individuals between the ages of 35 and 44 have an average savings of $27,900. Those aged 45 to 54 have an average savings of $48,200. The average savings for individuals between 55 and 64 is $57,800.
What is a respectable net worth? ›
Determining what your net worth should be at any age can be a bit tricky, and it depends on your income. Say you're 30 years old and your income is $50,000 per year. Your net worth should be $150,000, according to this formula. A $25,000 salary at age 30 would mean an ideal net worth of $75,000.
What is the top 10% household net worth? ›
Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900. These figures illustrate a dramatic wealth gradient in the U.S., indicating a substantial increase in net worth needed to move from the top 10% to the top 2%.
What is a good net worth to have at 35? ›
One common benchmark is to have two times your annual salary in net worth by age 35. So, for example, say that you earn the U.S. median income of $74,500. This means that you will want to have $740,500 saved up by age 67. To reach this goal, at age 35 you may want to have about $149,000 in savings.
How much does the average 35 year old have in their bank account? ›
Average savings by age
| Age | Median bank account balance | Mean bank account balance |
|---|
| <35 | $5,400 | $20,540 |
| 35-44 | $7,500 | $41,540 |
| 45-54 | $8,700 | $71,130 |
| 55-64 | $8,000 | $72,520 |
2 more rowsFeb 29, 2024
How many Americans have $100,000 in savings? About 26% of U.S. households had more than $100,000 in savings in retirement accounts as of 2022, according to USAFacts, a nonprofit organization that analyzes data from the Federal Reserve and other government agencies.
What net worth is considered rich? ›
According to Schwab's 2023 Modern Wealth Survey, its seventh annual, Americans said it takes an average net worth of $2.2 million to qualify a person as being wealthy.
How much does the average 35 year old have in a 401k? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 25-34 | $30,017 | $11,357 |
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
2 more rowsMar 13, 2024
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
What net worth is upper class? ›
With that in mind, a net worth of $604,900 would put you in the upper 25% of American households and having $1 million or more should make you firmly a member of the upper class. Of course, it's important to remember that net worth is calculated by adding up your assets and then subtracting your liabilities.
What is the top 5% net worth? ›
The most recent data from the Fed's Survey of Consumer Finances took a snapshot of the American public at the end of 2022. At that point, a net worth of $3,795,000 was enough to put you in the top 5% of all American households.
What is considered wealthy in retirement? ›
To be considered wealthy at age 65 or older, you need a household net worth of $3.2 million, according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF) to determine the household net worth needed at age 65 or older to determine the various percentiles of wealth in ...
How much money is considered middle class? ›
Key Findings. In a large U.S. city, a middle-class income averages between $52,000 and $155,000. The median household income across all 345 cities is $77,345, making middle-class income limits fall between $51,558 and $154,590.
How do you know how wealthy you are? ›
The main measure of wealth is net worth: the total value of your household's assets (like houses and savings), minus debts (like mortgages and student loans).
Is saving $1000 a month good? ›
Saving $1,000 per month can be a good sign, as it means you're setting aside money for emergencies and long-term goals. However, if you're ignoring high-interest debt to meet your savings goals, you might want to switch gears and focus on paying off debt first.
Is 300k in savings good? ›
If you've managed to save $300k successfully, there's a good chance you'll be able to retire comfortably, though you will have to make some compromises and consider your plans carefully if you want to make that your final figure. You should consider: Your planned retirement age – How will this stretch your $300k?
Is 35 too old to start saving? ›
It is never too late to start saving money you will use in retirement. However, the older you get, the more constraints, like wanting to retire, or required minimum distributions (RMDs), will limit your options. The good news is, many people have much more time than they think.
