Net Worth By Age (2026 Edition)

Income Trends: A Mixed Bag [00:00:00]

• Real, inflation-adjusted median household income rose 7% to $82,200.
• Average income, however, fell 6% to $145,200.
• This suggests a slight compression in income inequality, with the typical worker outpacing inflation while the top 1% saw income fall.

  "So we saw that labor income actually compressed. So real inflation adjusted median household income rose 7% to $82,200, while average income fell 6% to $145,200."

Wealth Inequality Explodes [00:00:00]

• Asset ownership tells a different story, with wealth inequality widening significantly.
• The median wealth of households in the top 10% grew by 31%, an increase of $872,000, reaching $3.67 million.
• This contrasts sharply with income trends, highlighting a growing chasm between asset accumulation and labor income.

  "On the other hand, asset ownership was a completely different story. And that is where the wealth inequality gap got much bigger."

National Net Worth Snapshot [00:00:00]

• The national median net worth saw a modest 2% increase to $215,000.
• However, the national average net worth jumped a significant 7% to $1.24 million.
• This average is heavily influenced by the substantial gains at the top of the wealth distribution.

  "The national median net worth is $215,000, up 2% from 2022. So not a huge gain here, but the national average net worth is up 7% to $1.24 million."

Challenging the "K-Shaped" Narrative [00:00:00]

• Not all data aligns with the "K-shaped" economy theory (rich get richer, poor get poorer).
• Paychecks narrowed the gap, with median income rising while average income fell.
• The middle class built real wealth, with wealth growth outpacing the national median in certain income quintiles.

  "The K-shaped economy means that the, you think of the capital letter K, the upper line keeps going up and the lower line keeps going down."

Supporting the "K-Shaped" Narrative [00:00:00]

• Homeowners continued to gain wealth relative to renters.
• Stock market participation dropped slightly from 58% to 56%, but those who remained saw significant wealth growth.
• The wealth gap between the top wealth tier and the bottom 25% widened dramatically, with the bottom quartile seeing a 56% drop in median wealth.

  "The stock market exploded over that time period. And there was a K-shaped divergence there where actually stock market participation dropped to percentage points."

Generational Wealth Divide [00:00:00]

• Americans aged 75 and older are now the richest generation, with median net worth surging 37% to $504,000.
• Conversely, the under-35 cohort experienced a 23% drop in median household wealth and a 33% drop in average wealth.
• Despite this wealth decline, retirement account participation hit a record high for those under 35.

  "Americans at 75 plus are now the richest generation in history. So usually net worth used to peak around age 65 to 74 and decline."

Debt and Income Uncertainty [00:00:00]

• While the number of people with debt remained stable at 77%, student loan debt decreased, but credit card debt increased.
• Loan delinquencies surged from 12.2% to 19.6%, with higher interest rates driving up debt service costs.
• A record 37% of Americans reported being unable to predict their income for the next year, signaling significant financial uncertainty.

  "However, we saw differences in the balances, right? We saw a decrease in student loan debt. I think we mentioned that earlier. And we saw an increase in credit card debt over that time period."