The net worth of American households increased by 37% from 2019 to 2022, which is more than twice the largest increase on record. The Federal Reserve’s most recent data shows a historic shift in consumer finances. If you’re interested in comparing your income and net worth to the rest of the population, you’ve come to the right place.

Understanding the Data
Before we dig into the numbers, it’s essential to clarify that the data we’re about to look at is from the 2022 Survey of Consumer Finances. This data uses household income and net worth, rather than individual.

These figures offer new insight into the financial stability that American households were able to accumulate during the pandemic. Families were able to save money and pay down debt due to generous federal stimulus payments and a decrease in spending.

Income
Let’s start off with a closer look at income, which is often a key driver of net worth. The table below provides a snapshot of median income, along with figures for the top 25%, top 10%, top 5%, and the top 1% of earners in the United States.

Income by age

This table gives a better understanding of how income changes over time and when earnings typically reach their peak. Generally, incomes start lower in early years and tend to peak in the late 40s or early 50s.

Net Worth
Next, let us examine net worth, which provides a better indication of financial health. The chart shows the median, top 25%, top 10%, and top 1% of net worth for households in the United States.

Net worth by age

While it may not feel like it, the finances of U.S. households have improved in a short time frame. The recent surge in net worth was the most significant increase since 1989. Housing prices played a significant role in this, as they increased by 40% from 2019 to 2022.

Bottom Line
Reviewing income and net worth data in the United States can offer valuable insights for your financial journey. Whether your goal is to boost your earnings, grow your net worth, or both, the data from the Federal Reserve’s report can serve as a helpful comparison. By staying informed and taking strategic steps, you can navigate your way to a more financially secure future.

George Maroudas, CFP®

George Maroudas, CFP®

847-550-6100
george@pmgwealth.com
Twitter @ChicagoAdvisor

Disclaimers / Sources: 

2022 Survey of Consumer Finances (SCF) from the FederalReserve.gov

Please consult your financial advisor regarding your specific situation. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.