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Turning 62 can feel like standing in a doorway. One side is full-time work and decades of saving. On the otherhand is the possibility of retirement (or at least the option to start shaping it). For many Americans, this is the age when finances stop being abstract and start feeling very real.
Whether you're thinking about claiming Social Security early, working a few more years, or figuring out how long your savings actually need to last, understanding how your net worth compares can help you avoid running out of money in retirement.
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What is the average net worth at age 62?
According to the Federal Reserve's most recent Survey of Consumer Finances, households headed by someone between 55 and 64 have a median net worth of around $364,000, while the average is closer to $1.36 million.
That gap is important to keep in mind. The average is pulled up by a relatively small group of very wealthy households. The median (midpoint) often gives a more realistic picture of what a typical 62-year-old actually has.
Many people approaching retirement have about $200,000 saved, in other words, and a smaller group has over $1 million. Many people are somewhere in the middle, with their home equity playing a major role.
Why 62 is a financial turning point
Age 62 is the earliest you can claim Social Security retirement benefits. That alone changes how people think about work, savings, and timing.
But claiming early comes with tradeoffs. Benefits are permanently reduced compared to waiting until full retirement age (typically 66–67), and that reduction can add up over decades.
At the same time, many people at 62 are:
- Helping adult children financially
- Caring for aging parents
- Managing health insurance before Medicare begins at 65
- Reassessing whether full-time work is still sustainable
This combination makes financial clarity even more important than before.
What makes up net worth at this age?
For most 62-year-olds, net worth is spread across several buckets — not all of them liquid.
Common components include things like:
- Home equity (often the largest)
- 401(k)s and IRAs
- Brokerage or savings accounts
- Pensions or annuities
- Vehicles and other property
- Outstanding debt
It's common for someone to feel "asset-rich but cash-tight," especially if most of their wealth is tied up in a home or retirement account they're hesitant to touch.
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How housing skews the numbers
Homeownership plays an outsized role in net worth at this age. Many 62-year-olds bought homes decades ago at much lower prices, and rising home values have inflated net worth on paper.
But that doesn't exactly translate to spendable income.
Unless someone downsizes or uses a tool like a reverse mortgage, home equity often sits idle. That's why two households with the same net worth can have very different day-to-day financial flexibility.
How 62-year-olds typically compare to each other
While every situation is unique, here's a general way to think about where someone might land:
- Below $200,000: Likely to rely heavily on Social Security and possibly continue work
- $200,000–$500,000: Some flexibility, but careful planning matters
- $500,000–$1 million: More breathing room, especially with low debt
- $1 million+: Often able to delay Social Security and manage withdrawals strategically
None of these categories guarantees security or struggle. Spending habits and timing matter just as much.
Why net worth alone doesn't tell the full story
Two people with the same net worth can have radically different retirements.
Someone with $600,000 and low expenses may feel more stable than someone with $1 million and high fixed costs. Health care, housing, family obligations, and debt all shape how far savings actually go.
That's why financial planners often focus less on a single number and more on cash flow, withdrawal rates, and flexibility.
How 62-year-olds can still improve their net worth
At 62, growing your net is less about big risks and more about small adjustments. Delaying Social Security (even by a year or two) can meaningfully increase lifetime benefits. Paying down high-interest debt, especially credit cards or personal loans, can free up cash flow quickly.
Some people also improve their financial position by downsizing, working part-time, or shifting investments toward lower-cost funds. Small, intentional moves at this stage can strengthen long-term stability without requiring dramatic changes.
Bottom line
At 62, your finances are no longer theoretical. They're starting to shape real decisions about when and how you'll step away from full-time work. Looking at your net worth in context can help you check up on your retirement readiness, not by chasing someone else's number, but by understanding how your savings, income sources, and expenses fit together.
For those born in 1960 or later, full retirement age is 67, and each year you delay claiming Social Security past 62 permanently increases your monthly benefit. Even a short delay can meaningfully improve lifetime income, making the years between 62 and full retirement age a powerful window for smart planning rather than panic.
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