America’s median Retirement Preparedness Measure is 78, indicating the typical household is on track to have about 78% of the income Fidelity estimates will be needed to cover retirement costs. Many people find themselves facing retirement shortfalls too late in their careers, when options to adjust become more limited. Imagine a 45-year-old who delays addressing a savings gap: by 50, the failure to act may reduce their monthly retirement income by hundreds of dollars. Regular net worth tracking can expose these gaps much earlier, enabling timely spending changes, increasing savings, or strategic reallocations while there’s still time to act.

Key Takeaways

• Assess retirement viability — The trajectory of net worth over time, not just its current value, indicates whether the plan is progressing toward its target.
• Identify gaps early — Comparing actual net worth growth to target growth rates can reveal shortfalls before they become critical.
• Adjust with precision — Common responses to deviations include portfolio reallocation, increasing contributions, or reconsidering retirement age.

Tracking the Trajectory, Not Just the Value

Many people see net worth as just a single number, but for retirement planning, how it changes over time is just as important as the amount.

• Hypothetical: A 52-year-old has $900,000 in assets and $150,000 in liabilities. On paper, their net worth of $750,000 seems healthy. However, if this figure has barely moved over five years despite steady income, the flat trend signals that future retirement viability may be at risk.

What really matters is how your net worth changes each year. Whether it’s growing, staying the same, or shrinking tells you if you’re on track for your retirement date.

Identifying Growth Gaps Before They Become Critical

Spotting a slowdown in growth early helps you avoid risky, last-minute changes. To do this, compare your actual progress to what you need to reach your retirement goal.

Hypothetical Example:

• Target retirement: $2 million in today’s dollars.
• Required annual net worth growth: $80,000.
• Actual average over the last three years: $50,000.

A $30,000 shortfall each year means the plan is falling behind by 37.5%. If nothing changes, this gap can grow a lot over ten years.

When such a gap is spotted, the most common responses include:

• Portfolio reallocation toward assets better aligned with growth or risk objectives.
• Additional contributions from increased savings or windfalls.
• Adjusting the retirement date to allow more accumulation time.

Adjusting Strategies with Cash Flow and Scenario Analysis

Tracking your net worth is even more useful when you use tools that look ahead. Cash flow projections show how your income and expenses might change. You can also test your plan against things like market drops or rising inflation. Try a simple 'what-if' exercise: What if the market falls 10% next year? How would that affect your net worth? Writing down these changes can help you see where your plan might need work.

• Hypothetical: A portfolio grows at 5% annually, supporting retirement in 12 years. A simulated recession with -15% equity returns in year three pushes the target date back by four years. Increasing annual savings by $12,000 in the simulation restores the original timeline.

You can track your net worth with a basic spreadsheet, a monitoring app, or an all-in-one tool like PortfolioPilot.com that offers tracking, projections, and scenario planning in one place.

Using Benchmarks to See if You’re On or Off the Curve

Looking at your net worth in isolation can be misleading. Benchmarks — such as median net worth by age group or income bracket — can help contextualize progress. According to the Federal Reserve’s 2022 Survey of Consumer Finances, the median net worth for households aged 55–64 was $364,500 (in 2022).

If your net worth is much higher or lower than that of others in your age or income group, it might be time to look at how much you save, how your money is invested, or how much you spend.

Why Ongoing Monitoring Beats One-Time Planning

A retirement plan you make today could be out of date in a year as things change. Tracking your net worth regularly helps you spot trends early, so you can make small changes before big problems arise.

For many, pairing automated tracking tools with periodic review by a financial professional combines real-time data with experienced interpretation.

• Final Insight: Retirement planning is more than just hitting a number. It’s about making sure you’re moving in the right direction at the right pace. By tracking your net worth, testing your plan with real-life scenarios, and making smart changes, you can turn uncertainty into steady progress. To get started, figure out how your net worth changed over the past year. Then, pick one thing you can do this year to improve your finances. Taking this first step can help you build a more secure retirement.