Retirement wealth calculations center on many competing data points. According to the Federal Reserve’s 2022 Survey of Consumer Finances, people between the ages of 65 and 74 have a median net worth of $409,900, while the average net worth in that age group is $1.79 million. However, none of these numbers fully capture the financial health of this generation: People ages 65 to 69 with a household net worth of at least $2.9 million are in the top 10 percent of their age group in terms of wealth, according to a MoneyWise review of the same data. Meanwhile, the wealthiest 1% of people in this age group have more than $21.7 million in wealth. In other words, only a small percentage of those aged 65 to 69 have a net worth at least $1.1 million higher than the average for all people in that age group, and at least $1.1 million higher than the average for those aged 70 to 74.
These distributions reveal why the average net worth of seniors is more than four times higher than the median for the same group, while also providing specific goals for everyone hoping to enter the world of wealth in retirement. Reaching a net worth of nearly $3 million is not an easy path, but it is possible for diligent savers who spend frugally early in their careers and prioritize retirement planning. In fact, a few basic financial strategies deployed over the long term can transform savers from middle-class consumers into millionaires.
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When you aim for value appreciation to propel you into the wealthy class, the first thing to remember is time. Compound interest is your biggest ally, which is why the most important advice experts give young people is to start saving diligently early. NerdWallet’s Retirement Savings Calculator estimates that a 20-year-old who contributes $650 per month to a retirement savings account, with a 6% return, would have a principal of $2.52 million by age 67. But if the same person waited just five years to start saving for retirement, their savings portfolio might be reduced to just $1.8 million. Meanwhile, the St. Louis Federal Reserve reported that as of the fourth quarter of 2025, the median home sales price was $405,300. So, in theory, a homeowner who starts saving at age 20 could have a net worth of more than $2.9 million by the time he reaches retirement age. Of course, this is only a rough guide and other unique assets and obligations will certainly arise.
