What Is Household Net Worth Distribution?
Household net worth distribution describes how total assets minus debts are spread across households. It is commonly measured using percentiles, medians, and averages. The Federal Reserve Survey of Consumer Finances is a primary source for this data.
Key Patterns in the Distribution
Wealth is heavily concentrated at the top. The top 10 percent of households typically hold the majority of assets, while the bottom 50 percent hold a much smaller share. Age also matters, as net worth tends to rise through midlife and decline after retirement.
Why This Matters
Understanding distribution helps policymakers, researchers, and businesses assess economic inequality and financial resilience. Differences in homeownership, retirement accounts, and debt shape each group's position. For deeper analysis, see the Federal Reserve's Survey of Consumer Finances.
