Finance: Here are the ages you financially peak at everything throughout life — from salary to net worth

Your retirement account is most likely to hit $1 million around age 59.

• Your financial situation is ever-evolving.
• But there are certain ages in life when you're most likely to reach a peak related to spending, saving, and earning money.
• For example, the average American woman earns the most money of her career around age 40.

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Your financial situation is ever-evolving — just like your happiness.

But similar to your state of mind, your finances are bound to peak at certain times in your life.

To find out what that timeline looks like for the average person, we've gathered some research on how Americans spend, save, and earn money.

The graph below pinpoints the age at which you peak at everything in terms of your money.

Keep reading to learn more about the five financial peaks:

Age 25: You spend the most money you don't have

Anyone, regardless of age, can be guilty of overspending. But for the average American 20-something, the propensity to overspend is often greater than any other cohort.

According to data from the Bureau of Labor Statistics, a 25-year-old's average pre-tax income is $31,000, while their annual spending is around $33,000. That means they're likely racking up debt — or getting a handout from mom and dad — to cover their expenses.

Living beyond your means is a bad financial habit to adopt, but entry-level salaries, expensive rents, and student loan debt aren't helping millennials spend less and save more.

Age 40: You buy a home

The typical US homebuyer is 40 years old and purchasing a home for $200,000, according to Zillow Group's 2017 housing report.

But 42% of all homebuyers are part of the millennial generation, between 18 and 37 years old, and becoming homeowners for the first time.

And many aren't doing it alone. Nearly 70% of all homebuyers are married or partnered and earn a median household income of $87,500.

Age 40: Women make the most money of their careers

Women's salary growth actually outpaces men's up until about age 30, when they start having children, and then it slows down considerably within the next decade, according to research from PayScale cited by CNBC.

College-educated women hit their peak earning around age 40, when their typical salary is about $60,000.

PayScale found the most common jobs held by American women are registered nurse, elementary school teacher, and HR administrator.

Age 49: Men make the most money of their careers

College-educated men, on the other hand, experience pay growth for almost a decade longer than women, peaking around age 49, with a typical salary around $90,000.

The most common jobs held by American men are software developer, project manager in construction, and computer systems administrator.

Age 59: Your retirement account hits a million dollars

Reaching millionaire status is nothing more than a dedication to saving. But it's easier to sock away more money when you have a high-paying job.

On average, women hit the milestone at age 58.5, while the average man became a millionaire at age 59.3, according to a Fidelity Investments report cited by the New York Times. The typical "401(k) millionaire" was an American with a six-figure income — $287,700 for women and $354,600 for men.

But you don't have to be a high earner to become a 401(k) millionaire. In fact, Fidelity found that saving consistently and investing in the stock market were the keys for those who reached millionaire status while earning less than $150,000.

Age 65-70: Your net worth is the highest it's ever been

Your net worth tends to peak around your mid-to-late 60s, or typical retirement age.

According to research by Wallet Hacks, the median net worth, including home equity, of a 65-to-69-year-old in America is $194,226 — and that's not very impressive.

To avoid depleting your savings account, the maximum amount you should withdraw each year during retirement is 4%. Divide $194,226 by 4%, and you're left with $7,769 a year, or less than $650 a month. Even with the average monthly Social Security benefit, the median American is living on $2,000 a month in retirement income.

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