How Retirees' Net Worth Compares With a Decade Ago

Recently, the Federal Reserve released its latest look at American households and their finances: the 2025 Survey of Consumer Finances (SCF). The survey covers a wide range of money topics, including net worth. Net worth is the total value of what you own, such as a home and retirement savings, minus debts like a mortgage or credit card balances.

The findings suggest that retirees are doing better financially than they were about 10 years ago. Still, retirement outcomes vary widely depending on how much people saved and how much they spend.

What the latest Federal Reserve survey found

The newest Federal Reserve survey uses data collected in 2025, although the results were released later. For households headed by someone age 65 to 74, the median net worth was $431,300, while the average was $1.9 million. For households headed by someone age 75 and older, the median was $504,900 and the mean was just under $2 million.

Median net worth is usually a better gauge of a typical retiree because it marks the midpoint, where half have more and half have less. Average net worth can be pulled higher by very wealthy households, so it is less representative of the typical retiree.

How retirees were doing in the earlier survey

In the earlier Federal Reserve survey, households with a reference person age 65 to 74 had a median net worth of $224,100, and households with a reference person age 75 or older had a median net worth of $264,800. The average net worth for both age groups was about $1.1 million.

After adjusting those figures for inflation using the Federal Reserve's factor, the 65-to-74 group would come out to roughly $302,490 in median net worth and $1.44 million in average net worth in current dollars. For households age 75 and older, the inflation-adjusted median would be $357,427, with the average also around $1.44 million.

What the trend data suggests

Comparing the earlier survey with the latest one shows major gains in both median and average net worth for both age groups. Even so, the progress has not been perfectly steady. Data from the 2022 Federal Reserve survey showed a decline in net worth from 2022 to 2025 for people age 65 to 74, while net worth rose for those age 75 and older.

Home values have helped boost wealth

Home prices have climbed significantly since before 2016, and that has been a major driver of higher net worth for retirees who own homes. Some retirees can tap that equity by downsizing and using the proceeds to support retirement, or by borrowing against their homes. That said, using a home as collateral carries risks.

The stock market has also played a role

Rising home values are not the only factor. The stock market has also generally performed well over the past decade, even with a few weaker years mixed in. Over the period from 2014 to 2024, the Motley Fool estimates that the S&P 500 gained an average of 12.8% a year.

Why net worth can decline in retirement

Many people spend decades building savings so they can eventually stop working. But once retirement begins, they start drawing down those assets. As withdrawals continue, net worth often flattens out or falls with age.

How much it declines depends on the balance between withdrawals and investment growth. Spending also matters, especially because many retirees face higher healthcare costs as they get older.

If your net worth is lagging

If your net worth is below the typical level for your age group, there are still steps you can take. Start by reviewing your retirement income and monthly expenses to find places to cut back. If spending is well above income, larger changes may be needed, such as downsizing or relocating to a less expensive city.

It can also help to get rid of high-interest debt whenever possible. Credit card balances can grow quickly because of steep interest charges, so paying them off can improve cash flow in retirement. Reaching that goal may require part-time work, selling possessions, or temporarily trimming nonessential spending.

Bottom line

Overall, retirees are wealthier now than they were a decade ago. But that does not mean every retiree is financially secure. If past mistakes have left you unsure how to build wealth in retirement, a financial planner may be able to help.

FAQs

Does Social Security count toward a retiree's net worth?

Future Social Security benefits usually are not counted in standard net worth calculations. However, payments already received and kept in a bank account do count as assets. Monthly benefits also matter when evaluating whether retirement income can cover expenses.

Is net worth the same as retirement savings?

No. Net worth includes home equity, retirement accounts, other investments, cash, and similar assets, minus debts. Retirement savings are only one piece of that picture, so a $500,000 net worth does not mean $500,000 is available to spend.