Are You Poor? Here's The Average Net Worth Of Americans 55 And Up

Every three years, the Federal Reserve conducts extensive research on the financial state of American households. Named the Survey of Consumer Finances (SCF), analysts use the gathered data to improve American economic policies. Here's the latest analysis of the average net worth of Americans.

According to the 2019 SCF, the overall average net worth of American households amounts to $748,000. However, the figure is not an accurate representation of the average American's wealth, CNBC reported. The net worth of wealthier families tends to skew the household net worth average.

A more realistic gauge of the average American wealth would be the median net worth. U.S. households' median net worth was found to be $121,700, as per the SCF.

The report stated that the median net worth of Americans aged between 55 and 64 is $212,500. Taking into account the wealth of affluent families, the average net worth is $1,175,900 in this bracket.

The Fed report also noted that the net worth of Americans tends to increases with age. For instance, the SCF noted that the median net worth of persons aged 35 to 44 is $91,300. Meanwhile, the median net worth of Americans aged 75 and above is $254,800.

The reason for their increase in net worth is often a result of asset appreciation over time. Additionally, older people tend to have a higher income as they have already progressed significantly in their career ladders.

Another reason cited for this inflation in wealth is the lack of debt, mortgages and other financial obligations that often plague the finances of younger U.S. households.

To improve the net worth of younger Americans, CNBC recommended that they either invest or stash their money in banks that offer better interest returns. The outlet also suggested that Americans make the most out of incentives in tax credits and deductions this 2021.

In 2019, consumer credit reporting company Experian reported that the average total debt per consumer was $90,460. In contrast, the average annual income of Americans stood at $50,413.