Few Under-40 Households Reach $500K Net Worth

New Federal Reserve survey data shows only about one in ten U.S. households headed by someone under 40 held a net worth of $500,000 or more in 2025.

Updated on Nov. 9, 2026 in Financial Planning

Few Under-40 Households Reach $500K Net Worth

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Just over one in 10 U.S. households headed by someone under 40 had a net worth of $500,000 or more in 2025, according to an analysis of the Federal Reserve's Survey of Consumer Finances. The median net worth for households under 40 was $51,300 that year.

Why it matters

The figures show that wealth remains concentrated by age, with most younger American households holding modest net worth. Nearly half of under-40 households at the $500,000 level were millionaires, underscoring how steeply wealth rises as households age into their 40s.

Of households headed by someone under 40, 10.3% had net worth of $500,000 or more in 2025, compared with about 31% of households in their 40s. The median net worth was $51,300, though the survey does not show how these figures will change as households age.

The players

Federal Reserve

The central bank of the United States, which conducts the Survey of Consumer Finances that produced the household net worth data.

Investopedia

A financial education website that published the analysis of household net worth by age using Federal Reserve survey data.

The details

Federal Reserve data show 62% of under-40 households had net worth below $100,000 in 2025, while 5.1% held $1 million or more. The median is the middle value, with half of households above and half below that figure.

• 2025: Net worth figures for under-40 households measured in the Federal Reserve's Survey of Consumer Finances.
• November 9, 2026: Investopedia publishes its analysis of household net worth by age.

Market Dynamics

The Federal Reserve's Survey of Consumer Finances remains the primary benchmark for tracking U.S. household wealth distribution across age groups. These 2025 figures add a current snapshot to decades of survey data showing wealth accumulating mainly in later working years.

For households under 40, the gap between the median and the $500,000 threshold highlights how much saving and investing time can matter. Readers can compare their own net worth against these age-based benchmarks when planning retirement contributions.

The takeaway

Building wealth early is difficult for most households, so consistent saving and investing over time remains the main path to higher net worth. Tracking your own net worth annually can show whether you are on pace with peers in your age group.