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

It's never too late to boost your financial health.

By Stacy Garrels

Edited by Chris Kissell

Updated Oct. 9, 2024

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.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Talk to a financial planner

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.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Buy rental real estate

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.

Build a CD ladder

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.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Manage your income with a tax professional

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.

Consider downsizing your home

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.

Consider a reverse mortgage

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.

Grow Your $$: 11 brilliant ways to build wealth after 40

Delay filing for Social Security until age 70

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.

Keep close tabs on your spending

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.

Pay off debts

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.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="http://www.sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account fees⁵ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> or overdraft fees⁶ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>. Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

Open your SoFi account and set up direct deposit

Don't overindulge on fancy cars and vacations

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.

Consider an annuity

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.

Bottom line

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.

More from FinanceBuzz:

Invest in Paintings by Basquiat, Picasso, Banksy

Masterworks Benefits

Invest in art like a millionaire for a relatively low cost
Art investments have outperformed the S&P 500 by over 131% for 26 years
Purchase shares of artwork by top artists
Hedge against inflation and diversify your portfolio

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