Here’s the Average Net Worth of 60-Year-Old Americans (How Do You Compare?)

Entering your 60s means you're closing in on the end of your working years. That means it's more important than ever to have a solid net worth if you hope to enjoy a stress-free retirement.

How does your net worth compare to the financial standing of others your age? Find out, and discover tips for boosting the size of your nest egg.

What is the average net worth of someone who is 60?

The Federal Reserve's 2022 Survey of Consumer Finances — the most recent that is available — found that the average net worth of Americans between the ages of 60 and 64 was $1,675,214.

However, that average number is high because of the enormous wealth of people at the top end of the scale. The median net worth — which represents the midpoint — was $394,010. That number might give you a better sense of the typical financial picture of someone in their early 60s.

Although these are the most recent numbers that are available, it's important to note that the figures likely have changed in recent years.

How is net worth calculated?

Your net worth represents the value of assets after subtracting debts and liabilities.

Assets include your bank balance, investments, and property. Debts and liabilities include your mortgage, credit card balances, and other loans.

To determine your net worth, simply subtract your total debts from your assets. The result gives you a dollar figure that shows your financial position, which you can then measure against others in your age range to see how you compare.

How to boost your net worth

If you're anywhere near the median net worth of $394,010, you're in a pretty good financial position as you enter your final years of work.

However, remember that the amount of money you need for retirement largely depends on the lifestyle you want to live.

If you are missing the mark significantly, know that you can take plenty of steps to boost your net worth during your 60s. Here are some tips for doing so.

Set a budget

Tracking your spending and establishing a monthly budget are critical steps to shoring up your finances.

Figure out how much money you need to spend on essential items and go from there. Once you have your monthly spending planned out, you should be less likely to overspend.

Cut expenses

Once you have figured out your budget, look for expenses you can eliminate.

If you critically analyze your spending habits, you will likely find that you're buying many things you don't need. Eliminating such unnecessary expenses is a safe and effective way to boost net worth.

Avoid lifestyle creep

As you age and become accustomed to a certain level of comfort, the cost of your lifestyle can creep up. Try to avoid letting this happen.

Consider ditching luxury cars and other expensive items that lower your net worth without significantly improving your quality of life.

Invest extra cash

Instead of letting too much cash sit in a bank account, funnel money into investments. You can do this through retirement accounts and other investment vehicles.

Keep contributing to those accounts until you're ready to stop working. Chances are good that you'll be thankful you took this step.

Manage your debt

Look at all your outstanding debts and create a payment plan. Clearing debt with high interest rates is one of the best money moves you can make as you head toward retirement.

If you crush your debt, you will free up cash flow for other things.

Sell your primary residence

Your primary residence likely represents one of the highest-valued pieces of your net worth. Downsizing as you grow older is a great way to cash out equity.

You can opt for a smaller house with less overhead and pocket the profit you make from selling your current home.

Diversify your income streams

Figure out new ways to monetize your skillset and find a side hustle or two that will boost your income.

Additional income streams mean higher monthly cash flows and more money to invest. Building out different sources of income allows you more flexibility as you step back from full-time work.

Reduce your tax liability

One key to making your money last during retirement is to find a way to maximize the withdrawal amount while paying the least in taxes.

So, meet with a certified tax professional to determine ways to save on taxes as you withdraw money from retirement accounts.

Delay taking Social Security

Most people first qualify for Social Security at age 62. But waiting to file for benefits until after that age can significantly increase your monthly payout.

In fact, for each year you delay filing for benefits after your full retirement age — which is 67 for most people — until age 70, you will increase your monthly payout by 8% each year.

This strategy can offer a major boost to your long-term financial security.

Make a retirement account withdrawal plan

As you close in on retirement, look at your retirement account balances and determine how much you can safely withdraw each year.

One rule of thumb is to withdraw no more than 4% per year, but everyone's situation is different. Speaking with a financial advisor can be a great way to uncover the strategy that works best for you.

Bottom line 


As you approach retirement, understanding and growing your net worth is key to financial peace of mind.

Whether you're near the median American net worth of $394,010 or aiming higher, there are practical steps you can take to boost your financial standing.

From budgeting and cutting expenses to investing wisely and reducing debt, you have plenty of options to ensure you've maximized your retirement savings.