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 you have at age 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.
How much does the average 35 year old have saved for retirement? ›
Average retirement savings balance by age
| Age group | Average retirement savings balance amount |
|---|
| Under 35 | $49,130. |
| 35-44 | $141,520. |
| 45-54 | $313,220. |
| 55-64 | $537,560. |
2 more rowsMay 7, 2024
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 should a married couple's net worth be? ›
The median net worth of married-couple households, the researchers found, was greater at all age levels than that of households headed by unmarried people. Married-couple households in the U.S. are far more likely to have a net worth above $250,000 than unmarried households.
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.
What is a good salary for a 35 year old? ›
The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. That said, the number conceals considerable variation by gender. For example, male 35- to 44-year-olds earn a median salary of $1,299 per week, whereas women in the same age bracket earn a median of $1,086 per week.
What is the average social security check? ›
According to a data release from the SSA's Office of the Actuary, aged 62 retired-worker beneficiaries took home an average of $1,298.26 in December 2023. This works out to just $15,579.12 per month on an annual run-rate basis, which is only $519 above the federal poverty level for a single filer in the U.S. this year.
How much should I have in my 401k at 35? ›
However, the general rule of thumb, according to Fidelity Investments, is that you should aim to save at least the equivalent of your salary by age 30, three times your salary by age 40, six times by age 50, eight times by 60 and 10 times by 67.
How many people have $1,000,000 in savings? ›
In fact, statistically, around 10% of retirees have $1 million or more in savings.
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.
At what net worth are you considered wealthy? ›
According to Charles Schwab's Modern Wealth Survey, Americans believe a net worth of $2.2 million is necessary to be considered wealthy. However, for many individuals who experienced poverty, wealth is defined by the ability to enjoy everyday luxuries and freedoms that others might take for granted.
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.
What is a financially comfortable net worth? ›
Here's a look at the net worth residents of each city say you need to be considered financially comfortable in 2023, ranked by net worth thresholds: San Francisco: $1.7 million. Southern California (includes Los Angeles and San Diego): $1.5 million. New York City: $1.2 million.
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 the net worth of the top 1%? ›
In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.
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.
Can I retire at 60 with 300k? ›
£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.
How much money should you have in your thirties? ›
Aim to save an amount equal to your annual salary by age 30 as a general rule of thumb. This provides a good foundation across emergency, short-term, and retirement savings buckets. Contribute early and consistently to retirement accounts to maximize compounding returns over time.
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.
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