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Here's the Average Net Worth of 85-Year-Old Americans (How Do You Compare?)

Here's what net worth really looks like at 85, and why stability, not size, often matters most in the later years.

By Kristin Hitchcock

Edited by Kristin Hitchcock

Updated Jan. 15, 2026

Reaching 85 is a financial milestone few people plan for in detail, yet millions of Americans do. By this age, most people have transitioned fully into retirement, made long-term housing decisions, and settled into a more predictable financial rhythm. Still, many wonder whether their savings are "enough," or how they compare to others their age.

Understanding how your finances compare can help you avoid wasting your retirement savings and feel more confident about the years ahead.

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What is the average net worth of an 85-year-old?

According to the Federal Reserve's Survey of Consumer Finances (SCF) (the most comprehensive household wealth dataset in the U.S.), households headed by someone age 75 or older have a median net worth of roughly $335,000, while the average (mean) net worth is closer to $1.6 million.

That wide gap highlights a key reality: a small number of very wealthy households raise the average significantly, while many older Americans live on far less.

Simply put, the typical 85-year-old has far less than $1 million in total assets. A large share of net worth is often tied up in the family home. Liquid savings also tend to decline as health care and living costs rise.

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Why net worth often peaks earlier than 85

For many households, net worth reaches its highest point sometime in their 60s or early 70s, not because of poor planning, but because spending naturally increases later in life.

Common reasons include:

Higher medical and long-term expenses
Reduced investment risk tolerance
Drawing down retirement accounts for income
Downsizing or selling a home to fund care or simplify life

By 85, the goal often shifts from growth to stability and sustainability.

How housing affects net worth at 85

Home equity plays an outsized role in wealth at this age. Many 85-year-olds who appear "wealthy" on paper are actually asset-rich but cash-light. For instance, they own a home outright but live on a fixed income. Sometimes, retirees may need to sell a longtime home to move into assisted living or use home equity to help fund long-term care.

This is why net worth doesn't always reflect financial comfort or flexibility.

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Retirement income sources at 85

By this stage, income is often a mix of Social Security, pensions, required minimum distributions from retirement accounts, and investment income. At 85, protecting income reliability often matters more than chasing growth.

Many retirees rely on several income streams, which increases reliability. Often, this income is more important than net worth.

How health care costs shape financial reality

Health care spending tends to accelerate sharply in the mid-80s. Even with Medicare, out-of-pocket costs for prescriptions, dental care, vision, and long-term services can be substantial.

According to multiple retirement studies, health care is one of the top reasons savings decline late in life, especially for those without long-term care insurance or family caregivers.

This is why financial planning at this age often centers on preserving cash flow, not maximizing returns.

What "doing well" looks like at 85

There's no universal benchmark for success at this age. Many financially stable 85-year-olds share a few common traits, though. For instance, they have housing that fits their physical and financial needs, a predictable income that covers expenses, and limited debt. A plan for medical and end-of-life expenses is also helpful.

Even modest savings can go far when paired with stable benefits and low fixed costs.

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How family support often shapes financial stability at 85

By 85, finances are rarely managed in isolation. Adult children, spouses, or extended family often play a role, whether that's helping manage bills, sharing housing, or stepping in during health changes.

For many families, the support is informal, such as adult children covering occasional expenses or helping with transportation. For others, there may be more structure involved, like sharing housing or financial caregiving. These arrangements don't show up in net worth numbers, but they're often a significant way to reduce financial pressure and improve quality of life.

This family safety net is one reason why people with similar net worth numbers can experience very different levels of financial comfort.

How lifestyle choices earlier in retirement show up at 85

By the time someone reaches their mid-80s, many of the big financial choices have already been made (often decades earlier).

People who downsized earlier, paid off their mortgage, or simplified their lifestyle often report less financial stress later on. Those choices don't always result in higher net worth, but they can reduce monthly obligations and create more flexibility. When you're on a fixed income, those differences matter a lot.

On the other hand, those who delayed downsizing or underestimated health care costs may feel more pressure even if their net worth looks higher on paper.

Bottom line

By age 85, financial success is less about how much you have and more about how well your resources support your day-to-day life. Most Americans at this stage are no longer focused on growing wealth. They're focused on stability and making their money last without constant worry. A stress-free retirement often comes down to manageable expenses and reliable income.

Women make up a larger share of the 85+ population, largely because they live longer on average. That means many households at this age are single-income or single-decision households, which can change how savings are used and prioritized.

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