What Your Net Worth Goals Should Be at Every Stage in Your Life

What Your Net Worth Goals Should Be at Every Stage in Your Life

Worried about your financial future? Maybe you’re still young but concerned about how things could turn out financially in the long run? It could be time to learn how to plan your financial future without living well today.

The sum of all your finances and assets, minus your debt is known as your net worth, and the result is used to measure how financially successful you are – according to some generalised standards anyway. Here is a break down showing what your net worth should be during the different stages of your life.


This is the early stage of adulthood and your financial well-being is likely to be second best to many other considerations, whether it’s travelling, volunteering, education or getting your foot in the door at a good company.

It’s important to take this opportunity to create a solid financial base for the future. Start by checking if you’re eligible for your employer’s workplace pension.

In your twenties, you might not have great savings habits but financial contributions which are taken from your salary can provide an automatic method to save in the background. This opportunity will also return contributions from the employer and to be taxed at a reduced amount. Most financial advisors recommend sending 6% to 10% of your salary towards a retirement plan.


In your thirties, it’s considered a “success” if you manage to have 50% of your annual salary contributed between a retirement scheme and a savings account. It’s also regarded as a good opportunity to invest money with the intention to enhance your savings.

The reasoning behind this is it’s a time when you can make a risk knowing that you can recuperate losses or enjoy rewards. However, recommendations state to use a investment broker to help you make the right investment choices.


Your forties are regarded as the time when your savings start to grow the most. The goal for your net worth should be around two times your annual salary. During this decade, there are various opportunities to accomplish this financial milestone than just savings accounts and retirement funds.

Property can be a great investment to supplement your future net worth. Assets tend to increase their value as time progresses, so investing in property is a great idea to diversify financial sources and boost your income.

Another good and reliable way to boost income towards retirement can be collecting the debt that friends, family or financial institutions may owe to you. Some insurances were previously mis-sold and it’s worthwhile checking if you are owed money.


During your fifties, the total of your net worth should be approximately four times your annual salary. This process can be overwhelming for younger individuals, but this is only the result of a consistent saving habit that was first implemented during your early years of adulthood.

It’s important to notice that the more you’ve saved in your younger years, that interest has been added annually for many years and can show a significant contribution. It’s also recommended to not forget your retirement contributions whereby within your fifties, you might have to support young adults or teenagers which can put a drain on your funds.

Therefore, ensuring you’re able to make a realistic financial commitment to your retirement will pay off in the long-term.

Sixty and above

This stage of life should be the one where you have six times your annual income. Your retirement needs will start to influence your goals. Also, the way in which you have saved previously will have a substantial impact.

In each generation, retirement becomes an earlier life goal which reflects in expecting to achieve savings milestones earlier than outlined. The financial backing which you’ve prepared up to your retirement will dictate the type of lifestyle you can enjoy during your retirement.

These recommended net worth goals are flexible depending on when you plan to start enjoying a retirement or the type of lifestyle you want when you retire. However, it’s never too early to start contribution towards your post-employment lifestyle as you can either plan a consistently small contribution that’s manageable and allows you to enjoy more throughout your lifestyle.

Alternatively, if you’re making dedicated time-periods to make large contributions, this will commonly come associated with sacrifices.

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