By Next Avenue
When Ed Koch was mayor of New York City, he loved to ask passers-by: “How’m I doing?!” We all want to know the answer to that question in our lives, too.
That’s why Next Avenue is launching the series: “Next Avenue Scorecard: How Do You Rate?” We’re starting with my area: Money.
Below you’ll find the latest statistics for how Americans in their 40s, 50s and 60s are faring, on average, based on: net worth, income, savings and investments, and debt — along with my two cents after each.
The good news I can report: According to a spanking new Fidelity Investments survey on retirement savings, individuals in their 40s, 50s and 60s are saving more for retirement these days than other age groups.
“We’re seeing many midcareer investors taking advantage of catch-up contributions [extra money people 50 and older are allowed to put into retirement plans], which is encouraging because this can have a significant impact on reaching savings goals,” says Ken Hevert, vice president of retirement products for Fidelity Investments.
On to the Next Avenue Money Scorecard:
Median family net worth
Age 45 to 54: $117,900
Age 55 to 64: $179,400
Age 65 to 74: $206,700
(Source: Federal Reserve Survey of Consumer Finances, 2012)
My two cents I think net worth — what you get when you subtract your household’s debt from its assets — is a somewhat meaningless number, since yours could look puny if you have a sizable mortgage, despite your savings. You can compare your net worth versus others with your income using the CNNMoney.com Net Worth: How Do You Stack Up? calculator.
Median household income
Age 45 to 54: $63,861
Age 55 to 64: $55,937
Age 65 and older: $33,118
(Source: U.S. Census Bureau Current Population Survey, 2011)
My two cents As you can see, household income generally shrinks once you hit your mid 50s and plummets after 65 (many in that age group are retired). A clever calculator on the Payscale.com site lets you see how your salary compares with others in your field with your experience; you can also get a free customized salary report with career path predictions for your job and names of companies who hire people like you.
SAVINGS AND INVESTMENTS
Total savings/investments, workers age 45 to 54
Less than $10,000: 46%
$10,000 to $99,999: 26%
$100,000 to $249,999: 12%
$250,00 or more: 17%
Total savings/investments, workers age 55 +
Less than $10,000: 31%
$10,000 to $99,999: 29%
$100,000 to $249,999: 18%
$250,000 or more: 22%
Percentage of workers currently saving for retirement
Age 45 to 54: 57%
Age 55+: 66%
(Source: 2012 Retirement Confidence Survey, Employee Benefit Research Institute and Mathew Greenwald & Associates)