News & Trending Money News

Here's the Average Net Worth of American Gen Xers (How Do You Compare?)

New data reveals how much the average Gen Xer has saved, and what practical steps you can take now to grow your wealth before retirement.

By Kristin Hitchcock

Edited by Laura Hohenstein

Updated Nov. 4, 2025

Here's a reality check: If you're part of Generation X (approximately ages 45–60), it's worth knowing where you stand and how you might strengthen your financial footing. With thoughtful action, you should be able to build your wealth in meaningful ways.

In this article, we'll examine how Gen X is doing, then present actionable strategies that could help you increase your net worth.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

Where Gen X stands financially

According to the most recent data from the Federal Reserve (via Fidelity Investments), American households whose reference person is age 45–54 have an average (mean) net worth of about $975,800, and those age 55–64 have about $1.57 million. Looking at the median (which tends to give a more realistic picture for typical households), for ages 45–54, the median net worth is roughly $247,200, and for ages 55–64, about $364,500.

In plain terms, many Gen Xers are behind where one might ideally like to be heading into the later working years, but there's still time to pull ahead.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Why you may not be further ahead

Several structural and personal factors contribute to slower net-worth accumulation for many in Gen X. For instance, Gen Xers frequently support growing children and aging parents simultaneously, increasing financial strain. Many Gen Xers entered the workforce or major asset-accumulation phase during or shortly after the early-2000s tech bust, the 2008 financial crisis, and a more volatile housing market. These events have disrupted wealth-building momentum. Gen X also has a high debt burden. For example, Gen X households hold relatively high mortgage liabilities.

That said, here are some steps you can take to help increase your own net worth.

1. Pay down high-interest and non-strategic debt

When you carry debt with high interest (e.g., credit cards, some personal loans), the interest is effectively eroding your ability to save and invest. Prioritize paying off debt with interest above ~8–10 % (or whatever rate you could otherwise earn by investing). Consider the "debt-payoff" ladder or "snowball" method (smallest debt first) if you need motivation. Once high-cost debt is serviced, redirect those funds toward savings or investments instead.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>

2. Maximize retirement-saving vehicles and tax advantages

With retirement still ahead for many Gen Xers, making the most of tax-favored accounts matters. If your employer offers a 401(k) or similar plan, aim to contribute enough to receive any company match. It's effectively "free money." After the match, consider increasing contributions when possible (e.g., an extra 1–2 % of pay per year) to capture compounding. Use IRAs (traditional or Roth) depending on your tax situation and contribution eligibility. Regularly review asset allocation periodically to ensure your investments align with your horizon and risk tolerance.

3. Invest in income-producing or growing assets (rather than just savings)

Simply holding cash isn't sufficient over longer terms, especially with inflation. Diversified equity or index-fund exposure as part of your portfolio, which historically has grown more than cash. Regular rebalancing to stay aligned with your goals and avoid over-concentration in any one asset class.

4. Increase earning potential and reduce "wealth leakage"

Your income and how you spend it both play major roles in building wealth. Seek opportunities to advance skills, certifications, or credentials that can raise your income ceiling. Consider side gigs or passive income streams to create diversification of earnings. Track your spending: create a realistic budget, identify non-essential "wealth leakage" (e.g., subscriptions, impulse purchases), and allocate savings before you spend. Redirecting windfalls towards investments rather than letting them build up as lifestyle inflation can also push your savings to the next level.

Make Money: 8 things to do if you're barely scraping by financially

5. Build an estate and legacy mindset

As you move closer to later working years, planning ahead can protect and augment what you've built. Ensure you have an up-to-date will or trust, power of attorney, and health-care directives. Meet with a financial advisor to map out projected retirement income, required savings, and possible gaps. You should also consider how any inheritance might impact your net worth and plan for those taxes now.

6. Setting meaningful targets and tracking progress

Having a benchmark can help with savings. If you're in your late 40s or early 50s and your net worth is under the median (~$247,000 for ages 45–54), you might view this as a signal to increase focus. If you're in your late 50s (age 55–64) and under the median (~$364,500), it could be a sign to boost your savings rate or adjust asset mix.

But remember: these are benchmarks, not guarantees. Your personal target depends on factors like desired retirement lifestyle, health, location, family structure, debt level, and risk tolerance.

7. Consistent tracking matters

Each year, you should sit down and track your financial progress. Calculate your net worth (assets minus liabilities) and compare the change from last year. An upward trend (even a modest one) is progress. Revisit your budget, savings rate, and investment plan, and adjust if you're falling behind.

Earn $200 cash rewards bonus with this incredible card

With the Wells Fargo Active Cash^® Card (Rates and fees) has no annual fee and you can earn $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

Cardholders can also earn unlimited 2% cash rewards on purchases.

The best part? There's no annual fee.

Click here to apply now.

Bottom line

Gen Xers still have time to strengthen their financial position, but doing so requires deliberate planning and steady action. Paying down high-interest debt, investing consistently, and using tax-advantaged accounts can help you prepare yourself financially for retirement and unexpected expenses.

A recent Allianz survey found that more than 60% of Gen Xers worry they'll run out of money in retirement, proof that financial anxiety is common, not personal failure. The key is to build flexible strategies that could help you withstand economic downturns and keep your long-term goals on track.

More from FinanceBuzz:

Benefits

Card Details

$0 annual fee
Intro APR on purchases and balance transfers
Apply Now

INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem cash back for any amount
Apply now and you could get a decision in as little as 90 seconds. No annual fee.
Start shopping and earning rewards in minutes with your virtual card, before your physical card arrives in the mail, if eligible.
Get a 0% intro APR for 15 months on purchases. Then 17.99% to 26.99% Standard Variable Purchase APR applies, based on credit worthiness.
Terms and conditions apply.

Discover <span class='whitespace-nowrap'>it<sup>®</sup></span> Cash Back

4.7

Apply Now

on Discover’s secure website

Read Card Review

Intro Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

Why we like it