And here's how to put yourself on a path to join them.
Tracking your net worth is one of the best ways to ensure you're making progress in improving your finances.
Your net worth takes into account all of your assets and liabilities to provide a full picture of your current financial standing. It can be much more enlightening than simply looking at your retirement account balance or how much you have left to pay on your student loans. Regularly looking at both sides of your personal balance sheet, so to speak, is a great way to make sure your finances are on the right track.
Consistently saving more than you spend, paying down your debts, and investing what's left is the formula for growing your net worth over time. And time is often a big contributor to building a substantial net worth.
So, while those in their 20s or 30s might be looking at how much the wealthiest Americans have, they might be more interested to know how much people their age are worth. Likewise, people in their 50s and 60s could get a false sense of how wealthy they are relative to their peers when you factor in people in their 20s and 30s who are still paying off their student loans.
If you want a high bar to aim for, making it into the top 10% by age group might offer the motivation you need to save more and build your wealth.
Image source: Getty Images.
Here's the net worth that puts you in the top 10%
Every three years, the Federal Reserve conducts a survey of American households, cataloging various financial and demographic details, including household assets and liabilities. The most recent data from the Fed's Survey of Consumer Finances comes from the end of 2022.
At that point, the top 10% of all American households had a net worth of at least $1.94 million. Here's how that breaks down by age group:
| Age Group* | Net Worth of 90th Percentile |
|---|
| 18-29 | $281,550 |
| 30-39 | $711,400 |
| 40-49 | $1,313,700 |
| 50-59 | $2,629,060 |
| 60-69 | $3,007,400 |
| 70-plus | $2,862,000 |
*For couples, the reference person is the male in mixed-gender couples and the older individual in same-sex couples. Data source: Federal Reserve. Calculations by author.
As you can see, the wealthiest Americans tend to be older, and that makes sense. They have had more time to grow their careers, pay off debts, and let their investments compound. The bulk of the wealth for the top 10% comes from investments in stocks and mutual funds as well as their primary residence.
That said, older households also had more opportunities to take on added debt and dig themselves deeper into a hole. Compound growth can work for or against you. The most indebted families are actually in their 30s and 40s, not their 20s, even though the median and top 10% of households are better off over time.
Growing your net worth requires a plan and the discipline to stick to it. If you consistently make progress starting in your 20s and 30s, you're more likely to climb to the top 10% of households by the time you're in your 50s and 60s. Here's how you can get yourself to elite levels of wealth.
How to build elite levels of wealth
If you want to grow your net worth, you have to put your money to work where it provides the greatest long-term returns. That's not necessarily investing in the stock market, although that's often a key component of achieving a high net worth.
If you're carrying high-interest debt, it likely makes sense to put most of your savings toward paying off those balances. Credit cards currently charge interest rates in the 20% range. Paying off those balances is like effectively receiving a 20%-plus annual return on your "investment."
That said, not all debt is bad. The vast majority of high-net-worth households are homeowners with mortgages. While the returns on real estate investing aren't necessarily better than investing in stocks, buying a home to live in is a great way to build wealth. That's because a part of your monthly mortgage payment goes toward building equity in your home.
There's plenty of low-hanging fruit for investing in the financial markets, too. If your employer offers a 401(k) match, that might merit priority over any debts or other commitments. There are few other opportunities to earn an immediate return of 50% or 100% (depending on the terms of your match). Even using a tax-advantaged savings account like an IRA can provide a nice boost to your net worth thanks to the tax savings it provides.
Making a plan for how you allocate your savings toward your current debts and potential investments is the first step to building your net worth. The second step is just executing the plan and waiting for your efforts to pay off. Even if you never make it to the top 10% of households, you'll certainly find yourself in a better place tomorrow by exercising good financial judgment today.
FAQs
Sign up for Kiplinger's Free E-Newsletters
- People with the top 1% of net worth in the U.S. in 2025 will have $11.6 million in net worth.
- The top 2% will have a net worth of $2.7 million.
- The top 5% will have $1.17 million.
- The top 10% will have $970,900.
- The top 50% will have $585,000.
Household net worth by age
| Age of head of family | Median net worth | Average net worth |
|---|
| Less than 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
2 more rowsJun 13, 2024
Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
What is the average net worth of the top 5% of Americans? ›
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. If that number has your head spinning, there are some important details you should consider.
What percentage of retirees have $3 million dollars? ›
Specifically, those with over $1 million in retirement accounts are in the top 3% of retirees. The Employee Benefit Research Institute (EBRI) estimates that 3.2% of retirees have over $1 million, and a mere 0.1% have $5 million or more, based on data from the Federal Reserve Survey of Consumer Finances.
What net worth is considered upper class? ›
The upper class has an average net worth of $793,120 to $2.65 million, while the lower class has $16,900. The middle class ranges from $58,550 to $300,800. You can grow your net worth by saving and investing consistently, investing in the stock market, and being careful about taking on debt.
What net worth is considered wealthy? ›
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
Does a 401k count as net worth? ›
Yes. The value of your 401(k) account is a part of your net worth and should be included in your net worth. Like anything else of financial value, the vested balance of your 401(k) account — or any retirement account, for that matter — is considered an asset.
What percentile is a $3 million net worth? ›
The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury.
Does net worth include home? ›
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.
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
Is 100k a year considered wealthy? ›
Is Earning $100,000 Considered Rich? Earning $100,000 is not considered rich either. You are considered middle class to lower middle class in expensive coastal cities. $100,000 is considered upper middle class in lower cost areas of the country.
What net worth is needed to be in top 5%? ›
The most recent data from the Fed's Survey of Consumer Finances comes from the end of 2022. If you wanted to be in the top 5% of households at that point, you would need a net worth of $3,795,000. As you might expect, though, you don't need as much to reach the top 5% of younger households.
What net worth is wealthy in 2024? ›
To be considered very high net worth, one might need assets ranging from $5 million to $10 million, while an ultra-high net worth status could require $30 million or more. These figures underscore the subjective nature of financial classifications across different thresholds of wealth.
What net worth is considered rich in Forbes? ›
Senior Contributor. I write actionable interview, career and salary advice. Americans need at least $2.2 million in assets to be considered rich, according to Charles Schwab's 2023 Modern Wealth Survey.
What household net worth is considered wealthy? ›
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
What is considered top 5 net worth? ›
The most recent data from the Fed's Survey of Consumer Finances comes from the end of 2022. If you wanted to be in the top 5% of households at that point, you would need a net worth of $3,795,000. As you might expect, though, you don't need as much to reach the top 5% of younger households.
What family income is top 10 percent? ›
A 2022 study by the Economic Policy Institute (EPI) found that the top 10% of earners nationally received an average income of $167,639 in 2021.
What percentile is $5 million net worth? ›
Americans need $5 million in net worth to join the 1% | Fortune.
