11 Steps To Increase Your Net Worth Above the Average 70-Year-Old

The average net worth of an American in their 70s is roughly $1.6 million, according to Empower, a retirement plan administrator. That’s a big number, yet many seniors have far less in their retirement reserves.

Empower says the median net worth for this age group is just $371,603. The median is the number at which half are above it, and half are below it.

Regardless of how much you have in savings today, it’s not too late to improve your financial standing. Here are some key ways 70-year-old investors can build wealth and create a stress-free retirement.

Navigating finances in your 70s can be complex. So, talking to a financial advisor is often a good first step toward building wealth. An advisor can offer personalized advice and help create a plan to grow your net worth.

Whether it’s optimizing your investment strategy, creating a plan to leave an endowment or legacy, managing taxes, or planning for long-term care, expert guidance can make a big difference for those interested in making wealthy money moves.

Investing in rental properties is another way to grow wealth during your senior years. Real estate can offer retirees a steady stream of income and asset appreciation.

If managing properties feels overwhelming, consider putting money into a real estate investment trust (REIT) as a more “hands-off” alternative.

A CD ladder allows you to stagger the maturity dates of multiple certificates of deposit (CDs). This strategy provides a stable and predictable income stream during retirement, with minimal risk involved.

Sites such as Raisin allow you to compare CD terms, rates, and conditions at banks and credit unions nationwide.

Taxes can take a significant chunk of your retirement income. However, crafting the right strategy — especially with regard to Social Security and required minimum distributions — can reduce the bite of taxes.

A tax professional can help you devise a plan to minimize your tax burden while keeping you on track for financial growth.

Downsizing to a smaller home can reduce the size of — or even eliminate — mortgage payments. Buying a smaller home also might help you cut the cost of insurance and property upkeep.

These reduced expenses allow you to invest the savings elsewhere, such as in stocks, CDs, or rental properties. And with less house to manage, you will have a lot more leisure time.

Reverse mortgages allow homeowners 62 and older to convert part of their home equity into tax-free income.

While this can provide financial flexibility, it comes with risks, such as high fees and potential complications for your children or heirs. Carefully weigh the pros and cons before committing to this option.

By waiting to claim Social Security beyond full retirement age, you can boost your monthly benefit by up to 8% per year through the age of 70. After age 70, there is no benefit to waiting any longer to file for Social Security.

Waiting to file can make a significant difference in your income over the long term, especially if you are healthy and expect to live into your 80s or beyond.

Tracking spending is crucial in retirement. By controlling unnecessary expenses — such as frequently dining out or shopping too much for the grandkids — you can save money.

Every bit you save can be redirected toward retirement income and growing your net worth.

Eliminating high-interest debt can free up more money to invest.

Focus on paying off credit cards, personal loans, and other high-interest debts first, as they tend to erode wealth faster than lower-interest debts.

Luxury cars and extravagant vacations can drain retirement savings fast. Opt for more practical spending, such as reliable, economy cars and trips close to home.

Also, look for ways to make vacations more budget-friendly, such as traveling with a friend to split the lodging costs, or planning trips abroad during the off-season.

These small lifestyle adjustments can help keep your finances on track, ensuring more money is available for long-term investments.

Purchasing an annuity can be among the best ways to supplement your Social Security and retirement funds.

An annuity provides a guaranteed lifetime income stream. Not all annuities are created equal, and they often come with fees and restrictions.

However, for some individuals who are 70 or older, an annuity might be a good idea. Work with an expert to determine if this is the right option for your retirement goals.

You can build wealth in your 70s with the right strategies. From delaying Social Security to investing in real estate, there are many ways to increase the size of your nest egg.

Start by making smart spending choices and seeking professional advice to ensure your financial future stays bright.