How Retirees' Net Worth Today Compares With a Decade Ago

The Federal Reserve has released a fresh look at Americans' finances through its Consumer Finances Survey, which includes information on net worth. Net worth is the value of a person’s assets, such as a home and retirement accounts, after subtracting debts like mortgages and credit card balances.

The findings suggest that retirees are in better financial shape now than they were 10 years earlier. Even so, retirement outcomes still vary widely depending on how much people saved and how much they spend.

What the latest Federal Reserve data shows

The most recent survey reflects data gathered in 2025, with the Federal Reserve publishing the results later. For households headed by someone ages 65 to 74, median net worth was $431,300, while the average reached $1.9 million. For households headed by someone 75 and older, the median was $504,900 and the mean was just under $2 million.

Median net worth is often the more useful figure because it shows the midpoint: half of households are above it and half are below it. The average can be pulled upward by a small number of very wealthy households, so it is less representative of a typical retiree.

How the earlier survey compared

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

When adjusted for inflation using the Federal Reserve's inflation factor, those earlier figures would come to about $302,490 in median net worth and $1.44 million in average net worth for ages 65 to 74, both in current dollars. For ages 75 and older, the inflation-adjusted median would be $357,427, and the average would also be $1.44 million.

What the trend means

Comparing the two surveys shows substantial gains in both median and average net worth for both older age groups. The progress has not moved in a straight line, though. Data from a later Federal Reserve survey showed net worth falling between 2022 and 2025 for people ages 65 to 74, while rising for those 75 and older.

Home values have been a major driver

One reason for the increase is the strong rise in home prices over the past decade. For retirees who own homes, that has helped lift net worth significantly. Homeowners can tap equity by downsizing and using the proceeds to support retirement, or by borrowing against their property, although using a home as collateral carries risk.

The stock market has helped too

Rising stock values have also supported higher net worth, even with some weaker stretches along the way. Motley Fool estimates that the S&P 500 posted average annual growth of 12.8% from 2014 through 2024.

Why net worth often declines in retirement

People spend decades building savings for retirement, but once they stop working, they usually begin drawing down their accounts. Those withdrawals can cause net worth to flatten or decline with age.

The extent of the decline depends on the balance between withdrawals and investment growth. Spending also plays a role, especially because healthcare costs often rise later in life.

If your net worth is below the benchmark

If you have compared your own figures with the median or average for your age group and feel behind, there are practical steps to consider. Start by reviewing your retirement income and expenses to find places where you can trim costs or build savings. If the gap is large, bigger changes such as downsizing or relocating to a less expensive area may help.

It can also be wise to tackle high-interest debt. Credit card balances are especially damaging because they grow quickly at high rates, and paying them down can free up money during retirement. Doing so may require part-time work, selling possessions, or temporarily reducing discretionary spending.

The bottom line

Overall, the numbers show retirees are wealthier now than they were a decade earlier. That does not mean every retiree is financially secure, however. If you are unsure how to strengthen your retirement finances, a financial planner may be able to help.

FAQs

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

Expected future Social Security payments are generally not counted in standard net worth calculations. Benefits already received and held in a bank account do count as assets, and monthly payments are also important when judging whether retirement income can cover expenses.

Is net worth the same as retirement savings?

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

How can I tell whether my net worth is enough for retirement?

Begin with your expected spending instead of a national benchmark. Subtract dependable income, such as Social Security or pension payments, from your projected expenses, then determine whether your savings can fill the remaining gap throughout retirement while also accounting for inflation and surprise costs.

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