The Top 1 Percent Net Worth by Age: How Close Are You?

net worth

Ever wondered what the top 1 percent net worth by age is? There is a big gap between the top 1% and the average net worth in the United States

In fact, the average net worth for those in the top 1% is $11.1 million! But what about people of other ages? How much do they have? And more importantly, how can you work out your own net worth and find out where you rank?

This article will explore the net worth amounts for different age groups and discuss what you can do to increase your own net worth.

What Is Net Worth, and How Do You Calculate It?

Net worth is simply the total value of all your net assets. For example, if you own a house that is worth $500,000 and you have savings of $50,000 but are also in debt for $250,000, then your net worth would be: $500K + 50k – 250k = 300k

Net worth can be a great measure of your overall financial health. It is calculated by taking all your assets (property, savings, shares, etc.) and subtracting any debts you may have. To calculate your net worth, you will need to know the total value of all your net assets and the value of all your net liabilities.

A net asset is an asset that has a net positive return. For example, if you own a house worth $500K but have a mortgage debt of $250k, then your net asset value would be: $500K – 250k = 250k.  And the same would apply to any stocks, savings, or property you own.

A net liability is a debt that has a net negative return. For example, if you owe money on your credit card or have an outstanding loan, this would be considered a net liability and should be subtracted from net assets.

A home mortgage may seem like a net asset because it increases in value over time. However, it should be considered a net liability because you need to pay back the loan with interest, and that will decrease your worth over time

A credit card debt would also be a net liability because you need to pay interest on this type of debt, decreasing worth over the long term. Car loans are usually not net liabilities, but they can depend on the loan terms. For example, if you have a car loan with a high-interest rate, then it would be a net liability

Now that we know how to calculate net worth let's look at some statistics by age group!

Top 1% Net Worth by Age

The net worth for those in the top one percent by age is quite staggering and the average increases with each age group. This is mainly due to increased earnings and investments as people get older. You have also gotten rid of any negative net worth like a home mortgage when you are older so this makes a difference.

Every three years, the Federal Reserve Board issues the Survey of Consumer Finances to share information about family and income in the U.S. The below summary gives an overview of the data points and net worth by age:

  • Top 1% for ages 18-24: $435,076.59
  • Top 1% for ages 25-29: $606,188.36
  • Top 1% for ages 30-34: $956,944.74
  • Top 1%  for ages 35-39: $4,034,486.45
  • Top 1%  for ages 40-44: $7,909,636.79
  • Top 1% for ages 45-49: $10,494,100.10

The first thing you will notice from this information is that the average net worth increases with each age group.  This means that it pays off to be patient and invest in yourself over the long term rather than trying to make quick returns on investments right now (although some of those people may have inherited their worth).

It also demonstrates how important it is to invest in yourself as early on possible, rather than waiting until later in life when you've got more responsibilities and less time/energy available. This means that if you are a young person reading this article, then now might be a good time for you to start investing more money into your worth.

What About Median Net Worth by Age?

According to dqydj, the overall median household net worth in 2020 was $121,411 (up from $97,225.55 in 2017).  The minimum net worth of the top 1% of households is roughly $11.1 million meaning there is a stark difference of nearly 11 million between the 1% and the average person.

Here’s how median and mean net worths break down by age, according to the SCF:

  • Ages 18.24 $8,216
  • Ages 25-29 $7512
  • Ages 30-34 $35,112
  • Ages 35-39 $55,519
  • Ages 40-44 $127,345
  • Ages 45-49 $164,197
  • Ages 50-54 $171,320
  • Ages 55-59 $193,549
  • Ages 60-64 $228,883
  • Ages 65-69 $271,805
  • Ages 70-74 $258,531
  • Ages 75-79 $272,976
  • Ages 80+ $235,193

As you can see it’s significantly less than the 1% meaning the average person has a lot of work to do if they want to get into the 1% category.

Does Median Net Worth Increase as We Get Older?

Yes, it does increase as you get older. The net worth for those in the top one percent is 16.5 million at age 65 and over and $272,976 median. This is likely because people have had more time to save and invest their money and benefit from compounded interest.

What Can You Do To Increase Your Networth?

There are a few things you can do to increase your average net worth and move closer to the top one percent:

  • Invest in assets that have a net positive return, such as property or shares
  • Reduce your living expenses to free up more money to go into investable assets
  • Make sure to invest in retirement accounts early.
  • Reduce your debts and liabilities
  • Live below your means so you can save more money

7 Tips To Increase Your Net Worth

By default, the top 1% net worth is not attainable for 99% of people. But that doesn't mean you can't increase your average net worth significantly from where it currently is. If you are looking to increase your net worth, here are a few things you can do.

Track Your Net Worth

It is important to track your net worth. That way, you will see how it changes over time and make adjustments if needed. You can use budgeting apps or websites to help you track your net worth for free or use spreadsheets to do it manually by using the formula mentioned at the beginning of this article.

Set Goals and Deadlines

It is important to set net worth goals – otherwise, it will be tough to get there. Once you have a net worth goal in mind, create a plan for achieving that goal by using the deadline technique (setting deadlines for particular net worth milestones).

Many other techniques can help you increase your net worth, but the ones listed above are a good starting point. Remember, it is essential to stay motivated and focused on increasing your net worth to join the top one percent!

Save and Invest Money

The more you save and invest, the more your net worth will grow. Investing in the stock market is one of the smartest things you can do with your money, as it allows your funds To grow over time. A Roth IRA is also a good option if you don't have one, as it allows you to make investment contributions without the standard tax deduction.

If you are nervous about investing, services like Motley Fool Stock Advisor can help you choose suitable investments based on your budget and risk tolerance. With investing, it's important to note that capital is at risk, so do take financial advice if you are in doubt.

Use a Budget To Keep Track

Using a budget like the 50/30/20 budget can help you steadily increase your worth. It helps by supporting you in making better decisions with your money – like whether or not to purchase that new outfit. It is easier to stick to a budget when you know how much money you have and what it's allocated for.

Lower Your Debt

The net worth formula is simple: net worth = assets – liabilities. If you want to increase your net worth, you need more assets or fewer liabilities (or both). Reduce the number of personal loans that you have and overall debt.

You can start by reducing the amount of money that goes out each month for interest payments. There are many ways to do this, but some popular methods include:

  • Negotiating a lower interest rate with your credit card company or other lenders
  • Refinancing your mortgage or student loans
  • Consolidating debt into a single loan with a lower interest rate

All of these methods will help you reduce the amount of money that goes out each month for interest payments so you can save more.

Increase Your Annual Income

You can also increase your net worth by increasing the amount of money each month (which will be easier than reducing expenses). Some popular ways to do this include:

  • Getting a raise at work or finding a new job with higher pay
  • Starting your own business or side hustle if cash flow is tight and you can't afford to save more.
  • Selling items on eBay, Craigslist, or other online websites like ThredUp

Increase Household Net Worth

Increasing your net worth is easier when there are two of you working together. Some things to consider when you're planning your net worth increase:

  • Talk about how much net worth each of you would like to have by a specific time frame, such as age 50 or retirement (for example).
  • Discuss any goals that can help achieve those net worth amounts faster – for instance, paying off the mortgage or saving for a specific purchase.
  • Determine who will be in charge of what – for instance, one person might be in the number of investments, while the other looks after day-to-day expenses.

Author: Mary Elizabeth


Mary Elizabeth is a self-taught finance nerd and money master. At the age of 21, she bought her first house, and by the time she was 30 had paid off all student debt and saved 100k.

She founded to help others achieve their own financial goals with uncomplicated advice that works for everyone from just starting out to those who have been saving for decades.