The Average Net Worth of Americans Who Retire at 62 vs. 67
If you’re like most Americans, you’ll probably leave the workforce around the age of 62. According to SoFi, that’s the average retirement age in the United States and also the age when you can first apply for Social Security benefits.
But if you hold out until 67, you’ll almost certainly be in a stronger financial position. And if you apply for Social Security at that age, you’ll get the full benefits you’re entitled to, per the SSA.
No matter when you retire, you want to make sure you’re financially prepared to do so. Here’s a look at the average net worth of Americans who retire at 62 vs. 67.
Average Net Worth at 62
Not much data exists on the average net worth at specific ages, including 62. Instead, most data focuses on age ranges.
A Fidelity analysis of Federal Reserve data found that the average net worth of Americans ages 55 to 64 is $1.57 million. Because 62 is at the higher end of that age range, you can assume the net worth of 62-year-olds is slightly above average.
But a more accurate measurement is probably median net worth because it eliminates the outsize impact of the ultrawealthy. The median net worth of Americans 55 to 64 is much lower at $364,500, according to Fidelity.
Net worth can tell you how you stand financially in terms of the difference between your assets and liabilities. But it doesn’t tell you how much money you have at your disposal. For that, a good metric is the amount of retirement savings you’ve amassed.
A study conducted by Boldin found that Americans ages 55 to 64 have average retirement savings of $537,560 and median retirement savings of $185,000.
Average Net Worth at 67
It should come as no surprise that the average net worth of 67-year-old Americans is higher than that of 62-year-olds. After all, your money has more time to grow at 67 versus. 62.
If you wait until 67 to retire, you’ll also have an extra five years of both income and retirement contributions.
The average net worth for Americans between the ages of 65 and 74 is $1.79 million, according to Fidelity. The median net worth is $409,900. In both cases, 67-year-olds are probably right around the average because the figure tends to drop once you pass age 70.
In terms of retirement savings, Boldin found that Americans ages 65 to 74 have an average of $609,230 in their nest eggs and a median of $200,000.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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