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10 Signs You’re Doing Better Than the Average American Over 55

From your salary to your retirement savings, see how you compare to your peers.

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Updated Dec. 17, 2024
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It’s no secret that keeping up with the Joneses is not the path to financial success. But as you reach age 55 and beyond, it’s normal to stop and look around at how you stack up against others in your age bracket, especially as retirement isn’t too far into the future.

Paying attention to certain financial statistics and benchmarks can help you determine if you’re financially fit or if you have some work to do. Here are signs that you’re doing better than the average American over 55.

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Your salary is over $64,688

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Income trends show that income typically increases as people age but reaches a cap around age 50 to 55.

The average salary for Americans age 55 is $64,688, but will likely decrease in the years after that. If you’re making over $65,000 per year at age 55, you're earning more than your average peers.

You have less than $7,500 in credit card debt

Shisu_ka/Adobe man choosing credit card for paying bills

Surprisingly, credit card debt balances increase as people age — until age 74, when the number drops dramatically.

If you're an average 55-year-old American, you likely have around $7,500 in credit card debt. If you have less or no credit card debt, you’re doing better financially than the average American your age.

Your monthly mortgage payment is $1,392 or less

JenkoAtaman/Adobe happy family unpacking boxes at new home

Housing is typically the biggest expense for each household, costing people about 26% of their monthly income.

If your mortgage payment is below $1,392, you're doing better than the average American over 55 — and most Americans in general.

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Your credit score is over 705

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A credit score between 690-719 is considered good. While the average score for 55-year-olds is 705, which falls into the “good” rating, having a higher score means more access to credit products and will probably get lower interest rates. And you’re doing better than the average American your age.

You have over $144,000 in home equity

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According to 2020 Census data, the average person age 55 has $144,000 worth of equity in their home.

For many people, home equity is a big part of their retirement plan. If you’ve got this much equity — or more — stored up in your current home, you're doing better than your average neighbors.

You’ve saved $537,560 or more for retirement

thodonal/Adobe Retirement savings concept on tablet

A study by the Bipartisan Policy Center found that 49% of Americans over age 55 say they don’t feel ready to retire. 

The biggest concern is having enough money saved to sustain the type of lifestyle you’re looking forward to during retirement. Some people are even worried about running out of money completely.

Based on data from the 2022 Survey of Consumer Finances conducted by the Federal Reserve Board, the average 55-year-old has just over half a million dollars saved for retirement. 

You can feel good about your savings efforts if your account balances for retirement are above that number.

Your student loan balance is below $45,159

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With the Biden administration's attempt to alleviate student loan debt, student loans have been among the top headlines many times over the last couple of years.

Borrowers over age 50 carry a huge debt burden, owing an average of $45,159 in student loans. If you owe less than that, you're doing better than the average American.

Your net worth is over $364,270

rebecca/Adobe net worth accounting equations on notebook

According to a 2022 Study of Consumer Finances, the median net worth for individuals aged 55 to 64 is $362,270. Using the median rather than the true average removes high-earning outliers that skew the numbers higher.

To determine your net worth, subtract your debts and liabilities from your assets. What's left over is your net worth.

You inherited more than $14,237

New Africa/Adobe inheritance words besides house car cutout

The average inheritance for those in the 46-to-55 age bracket was just under $15,000. The majority of those who receive an inheritance get it from their parents. A smaller percentage of heirs receive gifts from their grandparents.

You're doing better than your peers if you're lucky enough to receive that amount or more.

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How to become a member today:

  • Go here, select your free gift, and click “Join Today” 
  • Create your account (important!) by answering a few simple questions 
  • Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

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You have a will

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An estate plan directs what happens to your assets and finances when you die. Yet more than half of Americans over age 55 do not have a will, according to a study by Caring.com and AARP.

While a will may not affect you directly while you’re alive, it can seriously impact your loved ones when you’re gone. If you already have an estate plan, you're doing better than most people your age.

Bottom line

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Comparing your progress with the average 55-year-old American can help you determine your financial strengths and identify any weaknesses.

Whether your goal is having financial stability or a stress-free retirement, monitoring these benchmarks can prove your hard work is paying off. While these statistics can be useful, they aren’t a replacement for professional financial advice.

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