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

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 in the future.

Paying attention to specific financial statistics and benchmarks can help you determine your financial fitness and if you have some work to do. Here are signs that you're doing better than the average American over 55.

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

According to Indeed, the average salary for Americans aged 55 is $1,268 per week, but it will likely decrease in the years after that. If you're making over that amount at age 55, you're earning more than your average peers.

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 (considered to be Gen X), you likely have around $9,600 in credit card debt. If you have less or no credit card debt, you're doing better financially than the average American your age.

Housing is typically the biggest expense for each household, costing people about 31% of their monthly income.

If your mortgage payment is below $1,600, you're doing better than the average American over 55 and most Americans, according to The Motley Fool.

A credit score between 670-739 is considered good. The average score for 55-year-olds is 709, according to Experian, which falls into the "good" range. 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.

According to the most recent Census data, the average person aged 55 has $162,000 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.

A study by AARP found that 26% of Americans over age 55 say they don't expect 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 Western & Southern Financial Group, the average 55-year-old has about $244,750 saved for retirement. 

You can feel good about your savings efforts if your account balances for retirement are above that number and you have done what you can to prepare yourself financially for retirement. 

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 $45,125 in student loans. If you owe less than that, you're doing better than the average American.

According to a 2022 Study of Consumer Finances, the median net worth for individuals aged 55 to 64 is $364,500. 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.

The average inheritance for those in the 46-to-55 age bracket was just under $14,140. 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.

An estate plan directs what happens to your assets and finances when you die. Yet, as of last year, 32% of Americans over age 55 did not have a will, according to USA Today.

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.

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.