The average net worth at age 75+ is $980,000, but the median is about $284,000. At this stage, most retirees are drawing down savings. Here’s where you stand.
Net Worth at 75+ by Percentile
Percentile
Net Worth
10th
$10,000
25th
$80,000
50th (Median)
$284,000
75th
$850,000
90th
$2,400,000
Average (Mean)
$977,000
Data: Federal Reserve Survey of Consumer Finances (2022), ages 75+
Why Net Worth Declines After 70
Factor
Impact
Spending down retirement savings
Primary drawdown phase
Healthcare costs
Increase significantly after 75
RMDs force withdrawals
Must withdraw from tax-deferred accounts
Fewer market years for recovery
Less time to recover from downturns
Long-term care expenses
Major cost for many
Retirement Income at 75
Using a 5% withdrawal rate (appropriate for shorter time horizon):
Net Worth
Annual Withdrawal
+ SS ($25K avg)
Total Income
$150,000
$7,500
$25,000
$32,500
$284,000
$14,200
$25,000
$39,200
$400,000
$20,000
$25,000
$45,000
$600,000
$30,000
$25,000
$55,000
$1,000,000
$50,000
$25,000
$75,000
Required Minimum Distributions (RMDs) at 75
Age
RMD Factor
$500K Balance
$1M Balance
75
24.6
$20,325
$40,650
78
22.0
$22,727
$45,455
80
20.2
$24,752
$49,505
85
16.0
$31,250
$62,500
90
12.2
$40,984
$81,967
Net Worth Trajectory: 60-75+
Age
Median Net Worth
Change
60
$274,000
—
65
$362,000
+32%
70
$350,000
-3%
75+
$284,000
-19%
Healthcare Costs at 75
Category
Annual Cost
Medicare premiums
$2,000-$4,000
Medigap or Medicare Advantage
$1,500-$3,000
Prescription drugs
$1,500-$4,000
Out-of-pocket medical
$2,000-$5,000
Total typical
$7,000-$16,000
Long-term care (if needed) can add $50,000-$100,000+ annually.
Estate Planning Considerations
Action
Status
Will/Trust updated
Should review every 3-5 years
Beneficiary designations
Verify all accounts
Power of attorney
Essential
Healthcare proxy
Essential
Consider gifting
$18K/person annual exclusion
Key Takeaways
Median net worth at 75: ~$284,000 — average is ~$980K
Net worth typically declining from peak around age 65-70
5% withdrawal rate is reasonable at 75
RMDs are mandatory — $20K-40K/year at 75 on $500K-1M
