Net Worth: How do you stack up?

[LivingAlmostLarge]

Do these numbers not count pensions? My mom has $150k saved for retirement at 55! We have nearly that much at 28 and 30. BUT my mom draws a pension of $4k/month.

So are pensions not counted? Something forgotten is how many people have pensions and I think pensions are not considered.

[disneysteve]

Do these numbers not count pensions? My mom has $150k saved for retirement at 55! We have nearly that much at 28 and 30. BUT my mom draws a pension of $4k/month.

So are pensions not counted? Something forgotten is how many people have pensions and I think pensions are not considered.

I'm sure you are right and pensions are not included, nor should they be. The percentage of workers covered by a traditional pension plan has been steadily falling and I think is now in the 20-some percent range and is probably composed primarily of older workers nearing retirement age. I doubt that many folks in their 40s and younger have pensions. And many retirees or soon-to-be retirees have seen company pensions frozen due to under funding. What happens to those folks who didn't save on their own because they were counting on a pension to bail them out in retirement?

[LivingAlmostLarge]

I have no idea, but there are tons like that. I have friends in their 40s who were counting on retiring in 5 years but the union changed the retirement plan to 62. And they will not get as much as promised.

My mom worked for the state government so it was more secure. But within the state, it's a lot more stringent on the pension requirements, nowit's 62 and less than before.

She was grandfathered in at 55 and 2% per year of service = 70% of highest 3 years of salary. Most don't have that.

She even says how she's the last of the mohicans. That no one younger has what she has. And only people older. So older people NONE saved anything outside of pension, my aunt and uncle both were school teachers. Both are living well on their state pensions and SS, but neither saved a penny outside of the pension. They never saved into 401k or IRA.

But they make more now than they did while working. So I gotta believe poeple like them are skewing the numbers with 0 saved for retirement! But instead they are drawing like $10k/month in pension and SS.

And who couldn't live on that?

[disneysteve]

So I gotta believe poeple like them are skewing the numbers with 0 saved for retirement!

They are only affecting the numbers for their age group. When I type in my age of 43, the median number I see isn't affected by those folks already retired and living on a generous pension.

[MonkeyMama]

I see quite a few retirees taking on mortgages and moving up to much larger houses in retirement. They don't have the cash for it in the least. I think it is quite common these days for people expect to pay their mortgages forever.

(I personally cringe at that, but just had to throw in I see much of what Ima sees, though I see more of the big picture. Ugh).

I agree though - the elderly rely more on pensions. (& those nearing retirement). The younger of us will have to rely much more on savings.

[LivingAlmostLarge]

Definitely I'm not sure how someone whose in their 20s can only have $2k saved, that's barely a paycheck.

But I think most people in their 50s and older are still doing okay with pensions. I wish I had a pension.

[disneysteve]

I see quite a few retirees taking on mortgages and moving up to much larger houses in retirement. They don't have the cash for it in the least. I think it is quite common these days for people expect to pay their mortgages forever.

True. I saw a stat recently that I can't recall about the percentage of seniors with mortgages and that number has been steadily rising.

[SnoopyCool]

What things are considered in net worth? I understand it is Assets - Liabilities, but (for instance) do I assume my vehicle is a liability?

We're, unfortunately, even with the comparison (I believe). Hopefully we will get better and better as time goes by. Not hopefully; we will.

[disneysteve]

Definitely I'm not sure how someone whose in their 20s can only have $2k saved, that's barely a paycheck.

That doesn't surprise me that much. Keep in mind that many folks in their 20s are still in school. I didn't get out until I was nearly 29.

[disneysteve]

What things are considered in net worth? I understand it is Assets - Liabilities, but (for instance) do I assume my vehicle is a liability?

Everything you own that has monetary value is an asset and all money that you owe is a liability.

As for your car, if you own it outright, it is an asset. If you owe more than it is worth, it is a liability. If you have partially paid it off, it is a little of each.

[SnoopyCool]

We own our vehicles outright, but I had heard that since they cost $ for maintenance, gas, insurance that they were liabilities. Same with a house. I guess I can thank the Rich Dad, Poor Dad guy for that.

[disneysteve]

We own our vehicles outright, but I had heard that since they cost $ for maintenance, gas, insurance that they were liabilities. Same with a house.

Think of it this way. How much would you end up with if you sold everything you own tomorrow and paid off all of your debts? That is your net worth.

Yes, cars and homes cost money to operate and maintain, but they still have value so they count as assets for the purpose of calculating net worth.

Of course, net worth is constantly changing. Some assets appreciate. Others depreciate. So if you calculate your net worth today and then do it again in a year, you would need to downgrade the value assigned to those cars.

[VickiO100]

I didn't think this was a "look how much I've saved" board

Don't be so critical of others. There are those of us whose net worth is below the median for various reasons. Perhaps money is not as important as other things.

In my case, having a child to raise (alone) beginning at the age of 18 doesn't exactly allow one to save much, especially when paying for college 18 years later on a single salary. Due to a late start at college for myself, I actually have negative net worth at the moment.

I am working to correct this situation now that college is finished but it will take a few years. I doubt I will ever reach the median figures stated in the article.

[DebbieL]

Welcome to the boards Vicki. You're right, of course. We all have our own path and our own tale to tell. I too was a single parent for many years, so I know what that's like. I never got ahead at that time (also my ex is a total deadbeat who doesn't even visit our daughter, let alone want to support her).

Now, I'm 37, married almost 2 years ago, and finally things are looking up. I'm also back in college to earn my accounting degree, while working full time days and trying to deal with raising a teenager (15 year old DD). It's very busy for me, but at least I know things are getting better and I'll have a great paying career when it's over.

My net worth is positive, but not on the level of the "average" on that website. In a few years it will be looking much better.

I think people on this site can sometimes forget that most of them are not the "norm". The fact that they are even on this site is probably testament to that. I too sometimes feel "behind" the people who post here about their high net worths.

Another thing that makes things difficult where I live is that housing is out of reach for any sane person that's not a millionaire. Average prices are over $600K now. The same place would have been $240K five or six years ago. Average household income here is only in the 60s. People must be crazy to be buying at these prices. I cannot afford a home, and sometimes that weighs on me. I don't leave this city because it's my home town and all my family is here. My daughter is so close to my parents and her cousins it would break my heart to separate them, so I'll stay at least for now (and hopefully this damned housing bubble finally pops up here).

You are not alone in your situation. I would dare to say you probably represent a huge portion of the population. Congratulations to you on going to college - I am right there with you!

[Snave]

I am in that 25-34 category and it says a little over $2000. While that is extremely low,my guess is that those closer to the 34 bring it up some and those near 25 drag it down. I know my wife had a negative net worth at 25. She had been out of school fro 2 years and had 20K in student loans and 10K in credit cards. She probably had 8-10k at the time in her 403b, so she still had a negative 20k net worth. My guess is that she was not alone. That is probably what brings that number down significantly.