How Do You Compare to National Averages?
I’m occasionally asked where a client should be financially compared to others. When it comes to personal finances, many people wonder how they stack up against the rest of the country. Whether it’s savings, retirement funds, or net worth, understanding where you stand can provide valuable perspective on your financial progress. While everyone’s financial journey is unique—and blanket comparisons don’t always tell the whole story—there are certain benchmarks and metrics that can help you measure your financial health against national averages.
Median emergency savings: $600
An Empower study shows Americans have accumulated a median emergency savings of just $600. This varies by age with older individuals saving more.
- Gen Z median savings $200
- Millennials median savings $500
- Gen Xers have median savings $868
- Baby Boomers median savings $1,000
Average credit score in the US: 715
While credit scores tend to be higher for older individuals, according to Experian, the average score in 2023 is 715 which is considered Good credit.
- Poor credit: 300 to 579
- Fair credit: 580 to 669
- Good credit: 670 to 739
- Very good credit: 740 to 799
- Excellent credit: 800 to 850
Retirement savings at age 67: 10x income
Fidelity estimates that you need to save 10 times your income by age 67 to maintain your current lifestyle in retirement.
Fidelity’s guideline:
- Age 30 1x salary
- Age 40 3x salary
- Age 50 6x salary
- Age 60 8x salary
Note that the success of these estimates actually depends on how much you spend as well as factoring in your other income sources.
401(k) account contribution: 8.0%
In 2023, Capitalize found the average employee-only contribution was 8%; the average dollar amount of employee-only contributions of $5,993.
Average net worth: $1.06 million
The Federal Reserve 2022 Survey of Consumer Finances report found that the average net worth among all households was $1.06 million among U.S. families.
- Ages 18-34, net worth $183.380
- Ages 35-44, net worth $548,070
- Ages 45-54, net worth $971,270
- Ages 55-64, net worth $1.56 million
- Ages 65-74, new worth $1.78 million
- Ages 75+, net worth $1.62 million
Percentage of Americans with a Will: 32%
Caring.com’s 2024 Wills Survey indicates that only 32% of people in America have a will. This is 6% fewer than in 2023
How did you do? While comparing your financial situation to national averages can provide insight into where you stand, it’s important to remember that these benchmarks are just guidelines. Your personal goals, values, and circumstances play a much larger role in shaping your financial journey. Rather than focusing solely on how you measure up to others, use these averages as a tool to identify areas for improvement or growth. Ultimately, success in personal finance is about creating a plan that works for you and continually adjusting it to meet your evolving needs and aspirations.
