U. S. Census Bureau data - in The Wealth of Households report for 2021 shows that household net worth is distributed between generations in ways that are somewhat predictable - Baby Boomers and Silent Generation have the larger accumulations of net worth and Gen Zers are just starting to accumulate their assets. Net Worth is defined as Assets net of Liabilities.
The report uses survey information collected by the Census Bureau from its SIPP - Survey of Income and Program Participation. Americans aged 65-69 have average net worth of $593 thousand, which is identical to the average for Americans aged 70-74. These numbers exclude home equity. When home equity is included, these amounts increase to more than $800 thousand.
On the other hand, for those under 35, the net worth is closer to $106 thousand, without home equity and $154 thousand when home equity is included.
Mitch Kramer, Founder and CEO of Fluent Financial in Dallas says that home equity is often a big part of one's portfolio and he thinks that it should be used when calculating net worth. Kramer also thinks that its important to avoid comparing one's own net worth to the averages and simply using the comparison to determine if one is on track for their retirement or not. He believes that an individual plan for retirement is important and lifestyles and spending habits can significantly determine if one's net worth is sufficient, or not.
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