How fast should individuals plan to grow net worth as they age? To investigate, we examine median levels of household (1) total net worth and (2) net worth excluding home equity from several vintages of U.S. Census Bureau data. We make the following head-of-household age cohort assumptions:
- "Less than 35 years" means about age 30.
- "35 to 44 years" means about age 39.
- "45 to 54 years" means about age 49.
- "55 to 64 years" means about age 59.
- "65 to 69 years" means about age 67.
- "70 to 74 years" means about age 72.
- "75 and over" means about age 78.
We calculate wealth growth between these ages as compound annual growth rates (CAGR). Using median levels of total net worth and net worth excluding home equity from 2000. 2005, 2010, 2014, 2017, 2019, 2021 and 2022 Census Bureau summary tables, we find that:
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