Age-Adjusted Net Worth: A Fair Way to Compare Success

Age-Adjusted Net Worth Calculator

Comparing how successful people are can be tricky as there are many confounding factors. Things like how old someone is, how long they've been investing, and what strategies they use can all affect how much money they have. But there's a way to make things fairer called "age-adjusted net worth." It helps level the playing field by considering these factors.

What is Age-Adjusted Net Worth?

Age-adjusted net worth is a way of looking at someone's money that makes it fair to compare people at different stages of life. It looks at how old someone is and adjusts their money to show how much it might have grown or shrunk if it had been growing steadily until a certain age, usually around 60.

How is Age-Adjusted Net Worth Calculated?

    Figuring out if money would have grown or shrunk:
    If someone is younger than the target age (like 60), their money is adjusted up to show how much it might have grown over time.
    If someone is older than the target age, their money is adjusted down to show how much it might have shrunk over time.
    Making the adjustment:
    For younger people, their money is multiplied by a growth factor based on how fast it might have grown.
    For older people, their money is divided by a reduction factor based on how much it might have shrunk.

Why is Age-Adjusted Net Worth Useful?

Fair Comparison: Age-adjusted net worth lets us compare how financially successful people are, no matter their age. It helps us see how wealth grows over time, taking into account things like compound growth.

Long-Term View: By adjusting money to a common age, usually retirement age, age-adjusted net worth shows us how financially secure someone might be in the long run. It helps us see if people are on track to reach their financial goals for retirement or other long-term plans.

Evaluating Investment Strategies: Age-adjusted net worth can also show us how well different investment strategies work over time. It lets us compare how well someone's investments are doing against a standard that takes age into account.


Mark Zuckerberg is only 40, so his age-adjusted net worth is much higher than his actual net worth, emphasizing the remarkable feat of placing so highly on the Billionaires Index at such a young age.

Warren Buffett is 93, so his age-adjusted net worth is much lower than his actual net worth. While Warren Buffett has given away a substantial amount of his wealth and remains an accomplished investor, it's important to consider his extra decades of compounding when comparing his age-adjusted net worth to his actual net worth.

Practical Uses of Age-Adjusted Net Worth

Comparing Different Generations: Age-adjusted net worth is handy when comparing how financially successful people from different generations are. It helps us see how economic conditions, investment opportunities, and life expectancy affect wealth.

Looking at Career Paths: People can use age-adjusted net worth to see how their career choices affect their long-term finances. It shows how job decisions, salary increases, and investment choices add up over time.

Planning for Retirement: Financial advisors use age-adjusted net worth to help people plan for retirement. By predicting future wealth based on current money and growth estimates, advisors can suggest the best saving and investment plans to meet retirement goals.