Are You Broke or Winning? How Much You Should Have Saved at Every Age

Ever wondered if you're "normal" financially?

If you have enough saved for your age? If others your age are investing, or also living paycheck to paycheck?

Today, we're diving in. Numbers, data, reality.

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Average vs. Median — Why It Matters

Before we dive into the numbers, one important thing.

When someone says "the average American has a net worth of $1 million," it doesn't mean most people have a million bucks. The average gets pulled up by the wealthy.

Median is a better indicator — half of people have more, half have less.

Metric	Value
Average net worth	$1,059,470
Median net worth	$192,700

That difference — over $800,000 — tells you everything about how wealth is distributed in America...

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How Much Do Americans Actually Earn?

Before we look at wealth, let's talk income. Because a lot stems from that.

Metric (2024)	Value
Average household income	~$121,000
Median household income	$83,730

Again — average vs. median. Most Americans don't reach the average income.
When you read news about how great the average is, remember this article and have a laugh at how statistics can mislead.

Income by Age

Peak earners are in their late 40s to early 50s. Surprised or not?

Age Group	Median Income	Year-over-Year Change
Under 25	$60,310	+7.0%
25–34	$90,100	+2.4%
35–44	$106,100	+2.1%
45–54	$116,800	+2.8%
55–64	$91,620	-1.5%
65+	$54,710	+4.6%

Peak earning years are around 45–54. After that, income starts declining as people transition toward retirement.

Where Does the Money Flow?

Tech and finance lead with massive margins. Hospitality is on the opposite end.

Industry	Average Annual Salary
Utilities	$127,100
Information/Tech	$114,500–$120,370
Finance & Insurance	$112,300
Management	$118,100
Professional Services	$88,000–$92,000
Healthcare (varies widely)	$54,870–$220,850
Retail	$39,000
Leisure & Hospitality	$30,000

The difference between tech ($120K) and hospitality ($30K) is 4x.
There are surprises too — utilities have quietly climbed to the top over recent years!

If you or your kid is currently figuring out their future, I recommend adding this table to your decision tree.

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Where Americans Hold Their Wealth

This number honestly surprised me.

For the median household, about 45% of net worth is in their primary home.

Add retirement accounts (~27%), and you've covered most of what typical Americans own.

We're a nation of homeowners and 401(k) holders. Which has its advantages and disadvantages.

Advantage? You have somewhere to live and forced retirement savings.
Disadvantage? Your wealth is extremely illiquid. When you need cash fast, you can't sell your house in a week. And your retirement funds are locked up.

The wealthy play a different game entirely — the top 1% hold only 13% in real estate versus 41% in business equity and 31% in stocks. The top 10% own approximately 92% of all equities.

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The Gap Between Homeowners and Renters

Here's the brutal reality.

Housing Type	Median Net Worth
Homeowner	$400,000
Renter	$10,400

The difference between owner and renter? 38:1.

It's not just that homeowners are "smarter." Often they inherited, bought in a better era, or were lucky enough to have parents who helped with the down payment.
But it's the reality we have to work with.

Homeownership rates tell their own story:

Age Group	Homeownership Rate
Under 35	36.3%
35–44	61.4%
45–54	71.0%
55–64	76.3%
65+	79.5%

Under-35 homeownership fell to its lowest level since 2019 last year. The average age of first-time homebuyers hit a record 38 years in 2024.

Mathematically, renting and investing the difference can sometimes work out better, but we can't discount the magic factor of "forced savings" that a mortgage provides.
I have a whole article on this topic if you're interested in diving deeper.

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What Finances Look Like by Age

Now for the main event — where are your peers, and where are they heading?

Twentysomethings (Under 25 & 25–34)

This generation surprised me the most.

62% of Americans own stocks in some form, but among Gen Z, 42–55% own or have owned crypto — often allocating more than half their portfolio to it.

Problem? Volumes are small and emergency funds are lacking.
But here's the thing — they're investing, learning, experimenting. That's absolutely fantastic!

Typical twentysomething:

• Lives in a rental or with parents
• Has tens of thousands in the bank (not hundreds of thousands)
• Invests through apps like Robinhood, Fidelity, Schwab
• High crypto exposure
• Median net worth: $10,200 (under 25) to $39,000 (25–34)

Where you should be:

• Emergency fund covering 3 months of expenses
• Start investing (even $100/month counts)
• No high-interest debt (credit cards, personal loans)
• Average 401(k) balance at 25–29: $24,000

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Thirtysomethings (35–44)

The most demanding decade.

Mortgage, kids, career — all at once. And simultaneously the golden era for building wealth.

This age group shows 61% homeownership and the highest growth in net worth from the previous decade.

Typical thirtysomething:

• Paying a mortgage (average home price now $400K+)
• Median net worth around $135,600
• Combining mortgage payments with investments
• Starting to take retirement seriously
• Average 401(k) balance at 35–39: $73,200

Where you should be:

• Own a home (or have a clear plan toward it)
• Emergency fund covering 3–6 months
• Regular investments (ideally 15–20% of income)
• Consumer debts paid off
• Taking full advantage of 401(k) employer match

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Fortysomethings (45–54)

Peak earning years have arrived.

But also the highest responsibilities — 45–54 year-olds earn $116,800 median but often have college tuition, aging parents, and mortgages all competing for those dollars.

Typical fortysomething:

• Mortgage roughly halfway paid
• Median net worth $247,200
• More conservative investments
• Highest income of their career
• Average 401(k) balance at 45–49: $152,100

Where you should be:

• Mortgage under control (ideally under 50% of home value)
• Investment portfolio growing steadily
• Maxing out 401(k) contributions ($23,000 limit in 2024)
• Catch-up contributions starting at 50 ($7,500 extra)
• Family properly insured

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Fiftysomethings (55–64)

The final big push. Kids are leaving, expenses are dropping.

This is your last major chance to catch up if you haven't been investing.

Typical fiftysomething:

• Mortgage paid off or close to it
• Median net worth $364,500
• Shifting toward safer investments
• Thinking seriously about retirement
• Average 401(k) balance at 55–59: $244,900

Where you should be:

• Paid off or nearly paid mortgage
• 10–15× annual expenses in assets
• Clear retirement plan
• Diversified portfolio (not just real estate)
• Taking advantage of catch-up contributions

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Sixtysomethings and Retirees (65+)

Highest absolute wealth, but...

91% of retirees receive Social Security, and 50% depend on it for the majority of their income.

Only 27% have 6+ months of emergency savings. That's concerning.

Typical retiree:

• Paid-off home (main source of wealth)
• Average Social Security benefit: ~$1,862/month ($22,344/year)
• Median net worth: $409,900 (65–74) declining to $335,600 (75+)
• Conservative — savings accounts, bonds, CDs
• Average 401(k) balance at 65–69: $251,400

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How Much Do Americans Save?

Here's where it gets rough — the personal savings rate is just 4.6% as of 2024.

That's historically low. Back in the 1960s–70s, it averaged 11.7%. The COVID peak hit 32% in April 2020, but those days are long gone.

On an individual level?

• 24% of Americans have zero emergency savings
• 30% have some savings but less than 3 months of expenses
• 19% have 3–5 months covered
• Only 27% have 6+ months saved

Here's the famous Federal Reserve stat: only 63% can cover a $400 emergency with cash. For $1,000? Just 41%.

So where do you fall?

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62% of Americans Own Stocks

According to Gallup's latest survey, 62% of Americans own stocks in some form — up from 52% at the 2013 low but still below the 65% peak in 2007.

But careful — "own stocks" can mean a lot of things, including through a 401(k). Still, this number impressed me!

Group	Stock Ownership	Main Instruments
Income $100K+	87%	Diversified portfolios
College graduates	84%	ETFs, mutual funds
Gen Z (18–26)	42–55% crypto	Crypto, individual stocks, target-date funds
Millennials (27–42)	~50%	ETFs, index funds, some crypto
Gen X (43–58)	~60%	Mutual funds, growing self-directed
Baby Boomers (59–77)	~65%	Mutual funds, bonds, conservative
Income under $50K	28%	Limited participation

Young people are leading the charge in new investment approaches. That's great news for their future.

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What Does This All Mean?

Three Things You Should Know:

1. Your home isn't everything
45% of wealth in a primary residence is risky. What if you need money? What if the market crashes? Diversify and try to save a bit more than just your mortgage payment.
Even a small step in your twenties makes a huge difference later.

Will Social Security still be there in 30 years?
When I look at current political debates and fiscal realities, I don't know how it'll shake out for today's younger workers.
Setting a little aside isn't that hard, right?

2. Start investing — now
It doesn't matter if you're 25 or 55. Every year you delay costs you more than you think. Compound interest works, but it needs time.

3. Don't compare yourself to the average
The average is skewed. Compare yourself to the median.
Actually, scratch that — compare yourself to where you were a year ago.

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Conclusion

Financial health isn't a sprint, it's a marathon.

It doesn't matter where you are today. What matters is the direction you're heading.

If you're reading this article and thinking about your finances — you're already doing more than most people.

So let's go.

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Have questions? Email me at vymerd@gmail.com.

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Sources

• Federal Reserve Survey of Consumer Finances (2022)
• U.S. Census Bureau Income Data (2024)
• Bureau of Labor Statistics (2024)
• Fidelity 401(k) Data (Q4 2024)
• Bankrate Emergency Savings Survey (2025)
• Gallup Stock Ownership Survey (2024–2025)