Peak Wealth Accumulation Occurs in Late 60s, Then Slowly Declines in Retirement
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Average net worth peaks around age 65-69 at nearly $2 million, largely due to decades of retirement investing and home equity.
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Median net worth figures are far lower than averages, since the super rich skew averages upward; for 50-somethings the median is around $300,000.
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Compound interest and long-term investing are key factors in building wealth over decades. Home equity also builds wealth.
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Debt and expenses tend to outweigh assets for most people in their 20s, leading to negative average net worth.
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Net worth starts declining in the 70s as people retire and draw down their savings, though wealthier households may still earn more than they spend.