Key Takeaways
- Fed data shows retirees average almost $288,000 in net worth, boosted in recent years by significant gains in home values and investments.
- Retirees’ finances vary widely, with balances on mortgages, auto loans, and credit cards influencing outcomes as much as assets do.
- Protecting wealth in retirement often means earning strong yields, managing spending and debts, and perhaps earning a modest income to make your savings last longer.
What Retirees’ Net Worth Looks Like Today
The latest data from the Federal Reserve’s Survey of Consumer Finances shows that retirees hold an average net worth of $287,900 as of 2022. That figure captures everything they own—like homes, investments, savings, and vehicles—minus what they owe.
The line graph below shows how that number has shifted since 1989. Retiree wealth rose through the 1990s, slipped around the early-2000s downturn, and fell after the 2008 financial crisis. Growth resumed in the years that followed, but the most striking change came in the latest reading: a jump from about $203,000 in 2019 to nearly $288,000 in 2022, helped by rising home values and strong investment gains during the early pandemic period.
But that top-line figure only tells part of the story. Breaking down the components gives an even clearer picture of retirees’ financial position today.
Why This Matters to You
Understanding the makeup of retiree net worth can highlight where your own finances may be strong—or where they need attention. That insight makes it easier to focus on the actions that help protect the wealth you’ve built.
What’s Behind the Numbers—Debt, Mortgages, and Assets
While net worth captures everything retirees own and owe, the underlying pieces vary widely from one household to the next. The figures below reflect retirees who reported holding each asset or debt—not an average across all retirees. Still, the breakdowns offer a look under the hood at what adds to, and subtracts from, retiree wealth.
Common Assets Held by Retirees
Among retirees who reported owning these assets, typical balances include:
- Retirement accounts: $170,000
- Primary residence: $279,000
- Other residential real estate: $150,000
- Unrealized capital gains: $139,440
- Vehicles: $21,000
These amounts underscore how central real estate and retirement savings are to retirees’ overall net worth.
Key Debts Among Retirees
Among those carrying these liabilities, typical balances include:
- Mortgages or home equity loans: $100,000
- Home equity lines of credit: $27,000
- Other real estate debt (non-primary residence): $158,000
- Education loans: $20,000
- Vehicle loans: $13,000
- Credit card balances: $2,500
A look at these figures can explain why your own finances may look very different than those of today’s retirees.
How To Protect and Strengthen Your Wealth in Retirement
Retirement often means shifting from building wealth to managing it carefully. Even though net worth often declines over time as income disappears and savings are drawn down, there are practical ways to help keep your finances on steady ground.
One of the simplest steps is making sure your cash is earning a competitive yield, so that your savings keep pace with inflation. That can include today’s best high-yield savings accounts, money market accounts, and brokerage cash-management accounts, which pay far more than traditional savings accounts. For more predictable returns, short-term Treasuries and top-paying options from today’s best CDs can play a role, while I bonds add an inflation-linked choice that adjusts over time.
Keeping your spending in check is another meaningful lever. Setting a clear withdrawal plan—whether using the 4% rule as a baseline or adjusting for your personal needs—helps prevent your nest egg from eroding faster than expected. Lowering investment costs, such as by switching to index funds or reviewing advisor fees, can also help more of your money stay working for you.
For some retirees, you may even be able to provide helpful padding by earning a little income. Occasional consulting, part-time work, or monetizing a hobby doesn’t have to be a major commitment, but even modest inflows can slow the pace at which your spend your savings.
And while many retirees avoid new debt, reviewing existing balances—especially on mortgages, vehicle loans, or lingering credit card debt—can reveal opportunities to reduce costs or consolidate at lower rates. Every bit helps when you’re working to protect the resources you’ve already earned.
