Saving $500,000 by 40 is a Rare Achievement—How Many Americans Actually Do It?

Core Insights - Only about 10.5% of Americans aged 18-39 have a net worth of $500,000 or more, with the median net worth for this age group being approximately $178,000 [1][4]. Wealth Composition - Among those who have reached the $500,000 mark, home equity is a significant contributor, with 44.3% of Americans aged 18-39 owning a home and a median home equity of $100,000 [2]. - Approximately 53% of this age group have retirement accounts, with a median balance of $23,600, while the typical 401(k) balance for individuals aged 35-44 is around $40,000 [2]. - Stocks held outside retirement accounts are also a factor, with 22.3% of individuals aged 18-39 reporting stock holdings, having a median value of $5,000 [3]. Financial Challenges - The financial landscape for individuals in their 20s and 30s is characterized by significant expenses, including student loans, housing costs, and child-rearing expenses, which can hinder wealth accumulation [5][6]. - The median American aged 35-44 has saved only 4% of their retirement target in defined-contribution accounts, but this figure increases to 41% when including home equity and other assets [5].