The Federal Reserve’s 2025 Survey of Consumer Finances reveals a widening financial divide in the U.S., with households headed by someone 75 or older achieving the highest median net worth of any age group while delinquency rates on debt obligations hit levels not seen since the Great Recession.
Older Americans see record wealth gains
Households led by individuals 75 or older reported a median net worth of $504,000 in 2025, according to the Fed’s triennial survey. This demographic saw the largest increase in median net worth of any age group, with wealth rising 24% since 2022. Their median annual income also climbed 24% to $67,000 over the same period. The growth was largely attributed to gains in retirement assets, including 401(k) plans, as the S&P 500 surged 78% between 2022 and 2025. The number of 401(k) accounts with at least $1 million reached a record 769,000 in mid-2025, driven by strong market performance and rising employee contributions.
Households headed by 65- to 74-year-olds also saw significant gains, with their wealth increasing 37% since 2022. The top 10% of earners experienced a 31% rise in median net worth, reaching $3.6 million. Older Americans now account for 13.4% of U.S. households, despite representing the smallest age group demographic.
Debt struggles reach Great Recession levels
While wealth disparities narrowed slightly for some groups, the ability of U.S. families to meet debt obligations deteriorated sharply. The share of families behind on loan payments rose from 12% in 2022 to nearly 20% in 2025, a 67% increase. Those delinquent by two months or more grew from 5% to over 8%. The ratio of debt to income also worsened, with 8.6% of families now spending more than 40% of their income on debt payments—the highest level since 2013.
The survey covered a period marked by high inflation and economic growth, with the Fed noting that financial stress persisted even as the broader economy expanded. A separate New York Fed survey released in early 2026 found that households reported worsening financial conditions compared to the prior year, with expectations of further deterioration.
Demographic divides in financial health
The Fed’s data highlights sharp contrasts in financial stability across age groups. While older Americans benefited from asset appreciation, younger households—particularly those under 35—continued to face challenges. Families led by individuals under 35 represent the largest demographic group, accounting for one in five U.S. households, but their median net worth remained significantly lower than older cohorts.
The survey also underscored the role of stock market performance in wealth accumulation. The S&P 500’s 78% gain over the three-year period played a key role in boosting retirement savings and investment portfolios, disproportionately benefiting those with existing assets. Meanwhile, rising debt burdens—including credit card debt and student loans—posed growing challenges for lower- and middle-income families.
Policy and economic implications
Economists and policymakers are expected to weigh the survey’s findings as they assess the long-term economic impact of wealth inequality and debt sustainability. The data suggests that intergenerational financial disparities may deepen without targeted interventions, while the increase in debt delinquencies raises concerns about household resilience in the face of economic shocks.
The Fed’s report serves as a barometer of financial health, offering a snapshot of how Americans are navigating a period of high inflation, volatile markets, and shifting economic priorities. As the data is analyzed, discussions are likely to focus on policy responses, including potential measures to address debt burdens and support retirement security.