Are You On Track? Average Salary By Age And Net Worth

As seen on Forbes.

As the year comes to a close, it’s natural to reflect on your career and finances. But it’s easy to fall into the comparison trap, scrolling through LinkedIn and feeling like you’re behind. The truth is, everyone’s path is different. However, understanding the financial benchmarks for your age group can be a powerful tool. Use it not for judgment, but for a realistic financial check-up to help you set powerful goals for the year ahead.

Before diving in, understand that this analysis will be using median figures, not average. The median represents the midpoint, meaning the person exactly in the middle. This gives a much more realistic picture of the typical person’s finances than an average skewed by billionaires.

The 30s: The Building Decade

For many, your 30s are about hitting your stride. You’re moving beyond entry-level roles and taking on more responsibility. Your income and net worth should start to reflect that.

The Benchmark: According to the U.S. Bureau of Labor Statistics, the median annual salary for full-time workers aged 25-34 is around $55,000. The Federal Reserve’s latest data shows the median net worth for households under 35 is $39,000.

This time is the decade of “firsts”—first significant promotion, first time seriously investing, maybe even a first home. You’re juggling building a career with paying off student loans and starting to save.

Now is the time to focus on automating your savings. Create a system where a percentage of your paycheck automatically goes into a high-yield savings account and a retirement account like a 401(k) or Roth IRA.

Another focus is about negotiating your salary. Don’t wait for your annual review. If you’ve taken on new responsibilities, you need to advocate for yourself. A single raise in your early 30s can compound into hundreds of thousands of dollars by retirement.

The 40s: The Acceleration Decade

Your 40s are often your peak earning years. You have a decade or more of experience, a strong professional network, and deep expertise in your field. This is the time to leverage that experience into significant financial growth.

The Benchmark: The BLS reports the median annual salary for workers aged 35-44 jumps to around $72,000. The Federal Reserve shows the median net worth for this age group is $135,600.

By now, you’re likely in a senior or management role. Your financial focus shifts from just saving to strategic wealth-building, while also potentially managing larger expenses like a mortgage and family costs.

Focus on maxing out retirement accounts. Aim to contribute the maximum allowed to your 401(k) or other retirement plans.

Also, look into diversifying your income. This decade is the perfect time to turn your expertise into a side business, like consulting or coaching, to accelerate your earnings. Even starting a high-paying remote side hustle can make a huge impact.

The 50s: The Maximization Decade

In your 50s, retirement is on the horizon and no longer a distant concept. This decade is about maximizing your savings, solidifying your financial plan and preparing for the transition to your next chapter.

The Benchmark: The median annual salary for workers aged 45-54 holds strong at around $71,600, according to the BLS. The Federal Reserve data shows median net worth for the 45-54 age group is $247,200.

By this time, you are a senior leader or expert in your field. Your primary financial goal is to ensure your nest egg is large enough to support your retirement lifestyle.

Your focus would be on using “catch-up” contributions. The IRS allows people over 50 to contribute an extra amount to their retirement accounts each year. Take full advantage of this to supercharge your savings.

Another thing you can focus on is a pre-retirement budget. Start tracking your expenses and build a realistic budget for what your retirement spending will look like.

Also, consider having a “legacy” conversation. It might be time to start thinking about estate planning and how you can use your financial success to support your family or causes you care about.

Remember, these numbers are a compass, not a scorecard. They can help you see where you are and point you in the direction you want to go. No matter your age or current net worth, the most important number is the one in your plan. The best time to start was yesterday. The next best time is today. You’ve got this!