Here’s the Average Net Worth of 65-Year-Old Americans (How Do You Compare?)

If you are in your mid-60s, you're right around retirement age. A robust net worth is essential to a stress-free retirement. But how much exactly should you have saved?

Recently, Kiplinger crunched the numbers using the Federal Reserve 2022 Survey of Consumer Finances to determine Americans' average and median net worth at various ages.

Find out how much people have saved at the age of 65, and what you can do to boost your own net worth.

The average net worth of Americans aged 65-69 is $1,836,884, while the median net worth is $394,300.

Remember that the super wealthy drive up the average in this age bracket, so it's better to compare the median number to your net worth. The median is the midpoint, meaning half of savers fall above this number and half below.

In addition, these numbers are for individuals in the 65-69 age bracket, not just people who are exactly 65. So, you are probably still in good shape compared to peers if you have a bit less saved than the numbers above.

Net worth is determined by dividing the value of assets by liabilities. Assets include things like real estate, savings, and cash. Liabilities include mortgages, personal loans, and credit card debt.

Calculating the difference between assets and liabilities gives you a total net worth. Comparing this amount to others in your age group can provide you with a gauge of your financial standing.

You're in a good spot compared to your peers if your net worth is around or above $394,300. However, your retirement targets can be greatly impacted by your cost of living, medical expenses, and other factors.

So, you need to plan accordingly for your own individual wants and needs.

If your net worth is well below the median, reassessing your financial approach may be a good idea. Regardless of where you currently stand, there are many actions you can take to grow your net worth and increase your savings.

Here are eight steps you can take in your mid-60s to improve your financial situation.

Paying off debt will immediately improve your financial situation and give you more money in the long run. Interest payments on outstanding debt can eat away at monthly cash flow and make it harder to build wealth.

Figure out a strategy to get out of debt. Then, you will have more cash freed up for other expenses and investments.

Putting off enrolling in Social Security until later in life can make a huge difference in the size of your monthly payment.

For most people today, Social Security's full retirement age is 67. But for each full year beyond full retirement age that you delay filing for Social Security up to age 70, you will receive an 8% increase in the size of your monthly benefit.

If you're still healthy and employed — or if you have enough savings that you don't have to depend on Social Security — delaying when you file for benefits can have a huge payoff.

Becoming a member of AARP, the Association of Mature American Citizens (AMAC) or the American Senior Benefits Association (ASBA) can earn you many discounts and other benefits.

Over a long period, those savings add up.

Health care costs are among the largest expenses for those in retirement. Enrolling in a Medicare plan is essential once you reach your golden years. For most people, 65 is the earliest they can enroll.

There are many different types of Medicare plans to choose from. If you can't figure out which option is best for you, discuss your situation with a licensed Medicare broker or other expert.

Slashing your monthly budget can free up more money for investments, which can help grow your net worth. Start by looking at monthly subscriptions and memberships and seeing if you can eliminate a few of them.

Then, consider how frequently you go out to eat at restaurants and whether it's feasible to cook more meals at home. Those two approaches should save you a decent chunk of cash every month.

Once you trim those items from your budget, look for other ways to save.

A great way to save money is to travel to locations during the off-season, when prices are more affordable. Avoiding the summer and holiday rush should mean less money spent on airfare and lodging.

You also won't have to deal with all the crowds and congestion during peak season.

Once you qualify for them, senior discounts can be another great way to reduce costs.

Many business and membership clubs offer discounts to people 65 or older. As with everything else on this list, small changes add up over time.

A primary residence is the biggest asset — and, sometimes, biggest money pit — for millions of Americans.

The upkeep of a large house can be pricey. As you get into your retirement years, downsizing to a smaller living situation can make a lot of sense, helping you to get ahead financially.

Cashing out your equity while downsizing can provide a big financial boost. Plenty of senior retirement communities allow you to own an affordable condo, so it's worth considering the switch.

Planning for retirement can be challenging, but if you have enough in investments and a positive monthly cash flow, your net worth can remain strong even as you live on a fixed income.

Use all the above methods to ensure that your financial health remains strong. That way, you'll be in a great position to enjoy your retirement fully.