Americans In Their 20s Hold 38.7% Of Wealth In Cash — Here's How Asset Allocation Changes In Their 30s, 40s and Beyond

Recent data from Empower revealed that 52% of Americans believe cash is king, especially investors in their 20s who have 38.7% of assets in cash.

Your portfolio is likely to change over time as your life goals shift and your income and risk appetite change. Empower's personal dashboard data revealed that while net worth peaks in the 60s at an average of over $1.5 million, it begins to decline in their 70s.

Empower dashboard users invest in diverse asset classes, like cash, stocks, bonds, and even alternative investments, but portfolio allocation varies considerably across age groups. Data showed that while retirees in their 80s and 90s hold most of their assets in cash, this age group is surprisingly followed by younger generations in their 20s who have a median cash balance of $22,130 or 38.7% of their total assets.

Elsewhere, millennials in their 30s maintain an average cash reserves of $44,307 or 28% of their entire portfolio.

While such amounts of idle cash in savings accounts or money market accounts could mean young investors could be missing higher returns and the power of long-term compounding, the trend of holding cash can be attributed to their inexperience and potential risk aversion amid market volatility. The National Financial Educators Council's latest survey shows that Americans lost out on an average of $948 in 2025 due to lack of personal finance knowledge.

Average Stock and Bond Allocations by Age

Empower data showed that people in their 40s and 70s have the highest median US stocks holdings worth $261,578 and $216,536, respectively. At the same time, people in their 70s had allocated 10.9% to US bonds on average, while the bond allocations for those in the 20s, 30s, and 40s were under 5%.

People in their 20s and 30s have median US stock holdings of $46,262 and $155,164, respectively, while those in their 50s and 60s have median holdings of $367,412 and $330,022. The average US stock holdings for those in their 80s stood at $170,244.

Meanwhile, Americans in their 60s invest the most in alternative assets with a median amount of $17,320, followed by those in their 50s at $15,346, and people in their 70s at $9,988.

Overall, creating the right investment mix under the guidance of a fiduciary financial advisor based on your life goals and risk tolerance is crucial, given the rising volatility of stock markets this decade.

Ensure your portfolio is monitored regularly and rebalanced at certain intervals of time to remain aligned with both your short- and long-term goals. Simultaneously, resist the urge to time the market even when markets are down to avoid unexpected surprises.

Empower data showed the majority of Americans know about their financial goals, but they often require financial guidance to implement them. Looking for a financial advisor isn't also an easy task as these relationships hold the power to make or break your financial future. It is recommended you interview all potential advisors about their strategy, fees, and credentials before making a final decision.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks, and past performance does not guarantee future returns.