Here’s the Average Net Worth of 50-Year-Old Americans (How Do You Compare?)

As you enter your 50s and inch closer to retirement, building wealth becomes more important. So, where do you stand compared to peers?

Recently, financial services company Empower crunched the numbers to determine the average and median net worth of Americans at various ages, including folks in their 50s.

Below is the average and median net worth of folks in their 50s. If you have fallen short of the wealth others have accumulated at your age, remember that it’s never too late to start investing. Here are some tips for increasing your net worth.

The average net worth of individuals in their 50s is $1,406,887, while the median net worth is $288,263, Empower says.

Focusing on the median might be a better way to gauge where you stand. The average net worth is driven up by super-high earners — think multi-millionaires.

On the other hand, the median is the midpoint between the top and bottom. So, it offers a better point of comparison.

Remember, the Empower numbers apply to folks throughout their 50s, not just those who are exactly 50. So, if you are short of this number and in your early 50s, you still have time to reach the median or average.

Net worth is the total of your assets minus your liabilities. Assets include cash, savings, and real estate. Liabilities include credit card debt, personal loans, and a mortgage.

Once you subtract liabilities from assets, you will arrive at a total net worth in dollars. Use that number to compare to others in your age group so you can get a sense of where you stand.

If your net worth is above the median of $288,263, you're doing better than most folks your age. However, whether you are on target for retirement depends on many factors, including your costs and the lifestyle you desire during your golden years.

If you're significantly under the median, it's likely time to evaluate your financial strategies. No matter your financial position, you can take plenty of steps to improve your net worth and boost savings.

Here are 10 actionable steps that will make a big difference in your 50s and beyond.

Millions of Americans are saddled with debt. Getting yourself out of that situation is critical to increasing your net worth.

If you get out of debt, you won’t have hefty interest payments. That means your monthly cash flow will increase substantially. Better cash flow also means more money to invest in retirement accounts.

The longer you delay retiring from work, the more money you can save and direct toward investments, which will pay dividends later.

Additionally, pushing out your retirement age means you can delay filing for Social Security benefits. This will eventually result in a larger monthly payout once you finally file.

Meeting with a professional money expert can be an excellent investment in your future. An advisor can look at your entire financial life and recommend how to grow wealth.

You will get a personalized roadmap for saving and investing your earnings so you can retire with peace of mind.

Whenever you get a bonus or other expected windfall, avoid the temptation to spend the money. Instead, invest or save the cash.

Allowing that windfall to grow now will make a huge difference later on.

Build a solid stockpile of cash you can access during emergencies. Many experts recommend saving enough income to cover expenses for anywhere from three to six months, or even more.

Without an emergency fund, you might have to borrow money to cover unexpected expenses, and that will mean paying interest. That type of debt can undermine your efforts to build a solid net worth.

Once you reach age 50, you're eligible to make catch-up contributions to a 401(k) or similar account. This amounts to an additional $7,500 in 2025.

The higher contribution can make a substantial difference to your overall financial health.

The IRS adjusts the catch-up contribution over the years to keep up with inflation. But even if you just contribute an extra $7,500 each year during your 50s, you’ll have saved an additional $75,000 for retirement.

If you have a high-deductible health plan, opening a health savings account (HSA) can help you build up a tax-advantaged pool of savings that can help you cover the cost of medical expenses.

The money you contribute to an HSA is tax-deductible, grows tax-free, and can be withdrawn tax-free for qualified medical expenses.

Once you've spent what you need for short-term medical costs, you can invest any extra funds into stocks, bonds, or mutual funds. The best part is that your HSA money stays with you even after you retire, so you can still use it to cover medical expenses during your golden years.

Think of an HSA as your medical retirement account.

These groups offer many discounts and other benefits. That will free up more money for you to save.

Figuring out ways to reduce your tax liability can help build your bottom line. Any amount you can chip off your tax bill can be invested back into your retirement accounts.

Do the research and determine the tax breaks for which you are eligible. You won't regret it.

As you near retirement, taking up a side hustle to make extra money can be a great idea.

Having another source of income gives you more money to invest right now. You might even enjoy your side hustle so much that you continue to do it after you retire.

It's never too late to start changing your financial habits. Following the steps above can help you maximize your retirement savings and boost your net worth.

With a diligent approach, you can grow your net worth to the median and beyond, setting yourself up for a great retirement.