Understanding American Wealth: Median Net Worth by Age in 2022

Understanding Wealth: A Journey Through American Financial Benchmarks

Understanding your financial standing is an essential aspect of wealth management. It’s essential to know where you stand in comparison to others to assess your financial health better.

Harness Wealth, a prominent firm linking clients with financial advisors, utilized the Federal Reserve’s 2022 Survey of Consumer Finances data to devise a unique classification of American net worth across different ages.

As per their findings, the median American household net worth in 2022 was $193,000, which means that half of the US population has a net worth less than this, while the other half surpasses this benchmark. The richest 10% of the population, interestingly, hold a net worth of at least $3.795 million.

Income vs. Net Worth: Mastering Financial Terms

Notably, understanding the difference between income and net worth is vital in wealth management. Net worth is the difference between your assets and liabilities, while income refers to your annual earnings. A high income does not necessarily equate to a high net worth, a fact emphasized by many financial advisors.

The Wealth Ladder: Figuring Out Where You Stand

So, where do you stand on the wealth ladder? Continue reading to find out what it takes to be in the top 50%, 20%, and 10% of US households, according to Harness Wealth’s computations.

The Top 50% of Americans: How Do You Compare?

The chart below provides insights into net worth distribution across different age categories. For instance, if your net worth is $246,400 and you’re within the 45-54 age range, this means you’re wealthier than 50% of Americans in your age group.

Breaking into the Top 20%: Where Do You Stand?

The next chart presents the top 20% net worth benchmarks for different age ranges. For instance, if you’re in the 35-44 age group and your net worth is $546,300, this means you’re wealthier than 80% of Americans in your age group.

The Elite Top 10%: Are You a Part of It?

The final chart highlights the wealth of the richest 10% in America. If you’re in the 55-64 age group and your net worth stands at $2.96 million, you’re wealthier than 90% of Americans in your age group.

This article, first published in 2019, has been updated with the latest data.