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In the United States, a person’s net worth is a barometer of their financial status, especially as they approach retirement. This figure, calculated by subtracting liabilities from assets, varies greatly across populations, shaping retirement lifestyles and the financial security of millions.
Finance expert and author Geoff Schmidt Assesses retirement wealth using the latest data from the Federal Reserve Board’s Survey of Consumer Finances.
Poor: According to the Federal Reserve Bank of Richmond, households in the bottom 20th percentile of the wealth distribution with a net worth of about $20,856 are classified as poor. This group likely does not own a home and focuses financial resources on necessities.
middle class: The middle class is around the 50th percentile, with a median household net worth of about $193,000 for all adults. This typically includes home equity, savings and a 401(k) account.
Rich: To be considered well off, a person generally needs to be in the top 10th percentile of the wealth distribution. According to Federal Reserve-based benchmarks, the 90th percentile threshold is about $1.6 million, a level of wealth that allows for discretionary expenses such as trips, charitable donations and college funds. The 95th percentile, with a net worth of $3.8 million, is considered wealthy, facilitates estate planning and is likely to own multiple homes. The top 1%, often defined as the 99th percentile and above, live at an estimated wealth level of about $11.6 million or more, placing these households among the very wealthy who enjoy considerable financial freedom and luxury.
Based on the latest Federal Reserve Survey of Consumer Finances:
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Americans ages 65-74: Average net worth increases slightly in this age bracket, often nearing $1.78 million, reflecting continued asset growth and retirement savings before the drawdown begins.
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75 and above: Net worth typically declines after retirement, with the average figure for this demographic being about $1.62 million, as retirees gradually reduce assets during their retirement years.
According to Schwab’s 2024 Modern Wealth Survey, Americans perceive an average net worth of $2.5 million as wealthy.
