According to new data from financial services firm Empower, the average American in their 50s now has a net worth of $1.4 million.
Take a moment. Let it wash over you. If your immediate reaction was to laugh, choke on your coffee, or check your bank app just to make sure it didn’t update overnight, you’re not alone. The same report says the average 60-something is worth $1.6 million, while the average 20-something clocks in at a comparatively bleak $127,730. The takeaway seems to be that if you want to get rich, simply age several decades and hope the stock market likes you. But before anyone starts wondering what they did wrong with their life choices, there’s a very important catch (shocking, right?).
Average vs. Reality
That $1.4 million figure is an average, not a median, and the difference matters more than ever in this lovely, lopsided economy.
The median net worth for someone in their 50s — the middle number, not the one inflated by millionaires and billionaires — is just $192,964. That’s a far cry from seven figures and a much closer match to what most people actually experience. So basically, a relatively small group of very wealthy households is dragging the average way up, while the rest of the country is sitting there wondering who exactly this statistic is supposed to represent. Spoiler: not your group chat.
Where Is This Wealth Coming From?
For those who are on the higher end of the spectrum, experts point to three main factors: stocks, homes, and time. The S&P 500 has surged more than 250% over the past decade, rewarding anyone who stayed invested long enough. Compound growth does its thing quietly, then all at once. Over 30 or 40 years, money has plenty of time to double, then double again.
Homeownership plays a big role, too. For many older Americans, their house is their largest asset — essentially a forced savings account that grows as they pay down their mortgage and benefit from rising home values. Then there’s inheritance, which becomes more common as people age. Some 50-somethings inherit property or money from parents, often on top of assets they already own. None of this is exactly a mystery. It’s just… unevenly distributed.
What Net Worth Actually Looks Like by Age
Zooming out, net worth does rise with age, just not evenly. People in their 20s are often digging their way out of student loans and car debt. Their median net worth sits under $7,000. Thirty-somethings earn more, but expenses explode. Childcare alone can eat an entire paycheck.
In your 40s, compounding finally starts to show up, but so do peak expenses. Mortgages, kids, activities, healthcare, aging parents — the financial pressure doesn’t magically disappear just because your salary improves. By your 50s and 60s, those who managed to stay invested, buy a home decades before, and avoid major setbacks may see real gains. That’s why that average number feels less like a reflection of everyday life and more like a reminder of how wildly uneven wealth in America has become.
More From Cheapism
- Another Milestone Nobody Wanted: Wealth Inequality in the U.S. Has Its Widest Gap in 30 Years — New data shows the richest households are pulling further ahead, while everyone else watches from the sidelines.
- No Raise, No Problem: ‘Gave Myself a Raise by Doing Less Work’ — The trend is a direct response to stagnant pay, rising living costs, and executives taking home bonuses while frontline workers see nothing.
- 15 Common Financial Scams People Are Still Falling For (and How to Avoid Them) — While many consumers are sophisticated enough to avoid some of the most common scams, it doesn’t take much for a crafty hacker to steal your money.
