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24 Retirement Statistics That Will Amaze You

Retirement Stats

If you want to spend your golden years happy, you should know these retirement statistics that will amaze you. These will keep you from regretting retirement and running out of money to take care of yourself.

A recent survey from a trusted website found over half of Americans that are saving, have less than $10,000 tucked away. Actual numbers are probably more like one in three Americans have nothing saved (see #2). The National Institute on Retirement Security estimates the nation’s retirement savings gap is between $6.8 and $14 trillion. The Average retired American lives for 20 years so if you spend $5,000 per month you must have $1,200,000 to do that. Exactly how much you need to save for retirement is an ongoing debate, but one thing is clear: You’ll need more than nothing.

1. 12% of Retirees still work

Around 12% of retirees 66 and up say they’re still working on a part-time or seasonal basis. Some do so as a means of staying active, but for others, it’s a matter of dollars and cents. They suffer from the habit of not saving at early ages and they still have to work for lifelong, or maybe lifetime.

2. 45% Americans have saved nothing

According to recent Congressional testimony, 45 percent of Americans saved nothing—zero, zip, nada—toward retirement. The average retirement account typically carries a balance of $3000. That means they saved less than one-year of income for their retirement. If you want to be different from others, start savingNOW.

3. Average age of retirement is 63

A recent survey states that the average American retires at the age of 63. So you need to save $2,500 a month for 40 years or $30,000 per year for 40 years. That allows you to accumulate a sufficient account balance for about 20 years of your retirement. Doing this will give you roughly $5,000 of spending money per month for 20 years.

4. Retirement savings numbers starting at Forty

In 1990 the student loans were estimated at $10,000 and had been increasing. Now they have an average balance of $33,000. If you have not saved any for retirement by age 40, you will have to accumulate double the savings mentioned in point 3. You will have to save $5000 each month or $6,0000 a year for 20 years to enjoy that same $5000 a month spending power during your retirement. – Investopedia.

5. Borrowing from future can be terrible or beneficial

The loan is the payment which we borrow from our future earnings.  Suppose you borrowed $100,000 at the rate of 3% per year for 15 years. You will have paid $45,000 in interest plus the principal amount of $100,000 by maturity.

6. You might not retire on your terms

Everyone is not healthy enough to work in their 80s or 90s, so never think that you will work more than the average retirement age of 67. Many people are forced into retirement early due to illness and many other health issues. The goal should be to cover all your retirement savings as soon as possible.

7. Student loans can hurt your financial goals

Try to pay your debt as soon as possible! Suppose at the age of 30 you have the student loan debt of $30,000 with the annual interest rate of 5%. You will have to pay $125 per month or $1500 per year in interest alone. These dollars could significantly impact your long-term savings. Let’s knock out the debt.

8. Average net worth of a 55-64-year-old is $45,447 (assets minus liabilities)

If you have $45,500 in assets earmarked for retirement, and you spend the $5000 per month, you will use all of your funds within nine months.

9. Will you be 1 out of 6?

These days just one in six employers offer health insurance coverage to retirees. That’s a VERY BIG DEAL; especially since the costs of health care in retirement tend to make up the bulk of our list. In the past, when employers provided defined benefit plans (remember those?) that paid a steadily fixed pension every month, they also frequently offered health coverage. Those who had devoted a good chunk of their lives at a firm growing the business were well taken care of. If you luckily get the fixed amount for health insurance each month, that’s pretty good. However, if you are not that one out of six, you will pay the health insurance bills every year.

10. 36% of American adults over 65 are entirely dependent on Social Security

Just keep in mind social security cannot fulfill your retirement plan. It is only a small part of your retirement income. If social security pays 5% to 30% of your total retirement income, you will need other assets to supplement your income.

11. Millions miss out on “free” retirement money

Children's College Education

Unfortunately, millions of Americans aren’t doing themselves any favors. According to Financial Engines, an independent investment advisor, one-quarter of employees are not saving enough money to receive their employer’s 401(k) match. On average, those employees are missing out on an extra $1,336 a year, or a little less than an extra $25 a week. Overall, Americans are losing an estimated $24 billion every year in matching contributions. It gets worse; Retirement savers are also leaving money on the table with the Saver’s Credit. Only 25% of American workers with annual household incomes of less than $50,000 are aware of the tax credit, which is a benefit available to low- and moderate-income workers saving for retirement. The credit reduces a taxpayer’s federal income tax and may be applied to the first $2,000 ($4,000 if married and filing jointly) of voluntary contributions an eligible worker makes to a 401(k), 403(b), or similar employer-sponsored retirement plan, or an individual retirement account (IRA). 

12. The average out of pocket medical costs for a 65-year-old couple will be $218,000 over the next 20 years.

If you have planned to spend your retirement savings totaling $1,200,000 for next 20 years after retirement, and also you have to pay the Medicare yourself. So you must add the expense of $218,000 in your retirement planning and make it $1,418,000 to consider the medical costs.

13. Medicare only covers 62% of the average American’s medical expenses

Medicare costs will only pay the 62% of your expenses, or in our example, $135,160. The remaining amount comes out of your retirement plan.

14. 56% of Americans have less than $10,000 saved for retirement

Most Americans are falling short of the amount of savings required for a comfortable retirement if they are saving at all. The most common responses to the question of what people have saved for retirement across all age groups are “I don’t have retirement savings” and “less than $10K,” breaking down as follows: One-third of Americans report they have no retirement savings. 23% have less than $10,000 saved.

15. Women more likely than men to have no or little retirement savings

The gap between men’s and women’s retirement savings is cause for concern for anyone planning for retirement. It’s as much as 26%, according to the 2015 Gender Pay Gap in Financial Wellness report from financial education company Financial Finesse. Overall, GoBankingRates’ survey findings show that women are significantly less likely to be sufficiently saving for retirement: Women are 27% more likely than men to say they have no retirement savings. Two-thirds of women (63%) say they have no savings or less than $10,000 in retirement savings, compared with just over half (52%) of men.

16. Ask yourself whether you want to work forever

Extending work life is one way to solve the retirement gap. But sometimes you might get laid off, or nobody wants to hire you. Do you want to be beholden to a job for money when you’re over 65 years old? Every single dollar you save now is one dollar you’re saving for retirement, and if you successfully saved the amount of $1,200,000 by 65, you’ll enjoy your golden last years comfortably.

17. 66% of Americans don’t have a budget

The more you can track your finances, the better your net worth will grow (assets minus debts.) Practice knowing exactly how much you have in each account. Know your average total monthly expenses, and your track your average total monthly income to start a savings plan. Stick to a consistent process and soon your retirement savings will garner enough for your future.

18. 80% of Americans between the ages of 30 and 54 believe they will not have enough saved for retirement

If you think at the same age of 54 that you will not have enough retirement amount and still you think that the social security will save you in retirement, you are thinking wrong, as social security will not pay all your debts and bills, still you can start saving from that age and do your best to save smart amount, so that you will have not to regret at the age of 65.

19. 38% Americans don’t actively save for retirement at all

The Americans who don’t save at all rely only on their friends and their relatives at the age of retirement, or they will have to work in old age for their income, as they won’t have enough money in their hands even half $600000, they regret or they suffer.

20. Retirement savings correlate closely to age

Retirement savings are closely tied to savers’ stages of life. Young people just starting out may struggle to simply save at all. Perhaps $1000 to $5000 could be a sufficient goal. After all, as they get married and grow a family, they will be bills to pay. Meanwhile, those nearing retirement will likely want to have at least a few hundred thousands of dollars in their retirement accounts, due to family burdens. So the younger you start, the better you’ll be.

21. Some workers delay savings

60% of workers have less than $25,000 in retirement funds. 44% of those who contribute to a retirement plan through their job say they’ve accumulated assets totaling $50,000 or more, it means they haven’t collected enough funds for their retirement plans; you must start saving at an early age and reach the half level by your age of 40 or 50.

22. Around 10,000 people retire every day. That comes out to just over 3.6 million each year

Americans are still somewhat pessimistic about their future; even they have not saved half of their retirement plan that’s around $600000 to half million dollars. For many seniors, that means delaying retirement a little longer than expected or continuing to work in a reduced capacity.

23. Only 4% of workers believe they’ll be able to stop working before age 55

If you are that worker and believe that you will stop working at the age of 55, you must accumulate more than the average of $1.2 million needed in retirement. The average life after retirement is 20 years, which is usually around 63 years, but at the age of 55, you’re looking at tacking on eight more years. Meaning you need to accumulate double or closer to $2.4 million.

24. Start saving early and often

As stated earlier, start saving young, because at this point in life you can save almost all of your income. For example, if you make $50,000 a year with few responsibilities, like children or real estate, you have excess income to deposit into retirement accounts. However, as you grow, you will have to pay the expenses of your children’s study and other vehicle expenses which can reduce your savings by 50%. Remember, though; IT’S NEVER TOO LATE TO START!

I hope these statistics will help you make the necessary choices to max out your retirement plan. Remember, work now by saving early and enjoy your golden days without working anymore.

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