In recent years, some people have struggled to make ends meet after their careers. Other individuals feel shackled by mortgage debts they need to consider on top of their day-to-day expenses. The struggles of retirees are encapsulated in the latest retirement statistics. They say it’s never too early to save for retirement, but that doesn’t mean you should strip yourself of pleasures you love so much. With help from Adam Enfroy and Legal Jobs, we have pulled together some critical retirement statistics you should be aware of related to both the present and the future. These stats can either help you prepare for retirement or show you that your current priorities are just fine.
General Retirement Stats
- On average, a retiree spends $4,300 out-of-pocket for health care expenses annually.
- Military retirement statistics forecast the number of U.S. military retirees to grow to 2.21 million by 2030.
- Only 61% of Hispanic Americans and 64% of Black Americans have some retirement savings, compared to 80% of white Americans.
- Retirement statistics show 80% of retirees-to-be believe they will continue working even when they retire. Only 28% of them continue working for a monthly paycheck.
- The average retirement age in the United States is 62 for retirees, while the expected retirement age for current workers is 64. The full retirement age is 67 for those born after 1959.
- You can collect social security benefits when you turn 62, but that’s not the best decision. You’ll get 25% less of the monthly amount you were supposed to get if you do that.
- There will be around 88.5 million Americans over the age of 65 by 2050. The more people retire, the fewer people work and pay social security.
- A person that’s 65 today is expected to live to about 85, while in 1940, they would be expected to live till they were 79. With an increase in life expectancy, the amount of time you’ll spend retired is going to be longer.
Confidence in Retirement
- 1 out of 3 workers isn’t confident they’ll have enough money to be comfortable in retirement.
- Many Americans are scared that there won’t be any social security left when it’s time for them to retire.
- 1 out of 12 Americans believes they’ll never retire at all.
- Despite the fears posed by the many concerning retirement facts in 2019, 68% of workers across three generations feel optimistic about retirement.
Women vs. Men in Retirement
- Women’s average total retirement savings in the U.S. is just $57,000, whereas men’s average total retirement savings is $118,000.
- Only 68% of women save for retirement, compared to 81% of men.
- 56% of women cite saving for retirement as a priority, compared with 62% of men.
- Over half of women determine the amount they believe they need saved for retirement by guessing. Just 18% use a calculator or worksheet, and 10% use a financial advisor.
- 22% of workers have no idea how US retirement funds work or where the retirement money is invested.
- Based on the retirement stats from 2020, the personal savings rate in the US amounted to 13.7%.
- According to the Transamerica Center for Retirement Studies, the median total household retirement savings across all workers is approximately $93,000.
- 43% of workers guess how much they need to retire, rather than basing it on current expenses or using a retirement calculator.
- Only 12% out of 54% of all people that have a strategy to retire have written it down.
- 401(k) and 403(b) are the most popular retirement savings plans because they are tax-free until you decide to withdraw them, as noted by retirement statistics.
- 60% of those who haven’t yet retired and own an IRA or 401K aren’t comfortable managing these funds.
- As many as two out of every three people don’t have more than $100K in savings for their retirement years.
Baby Boomers Retirement Statistics
- An average 65–74-year-old spends about $55,000 on living expenses.
- Baby Boomers retiring statistics report that 10,000 Boomers turn 65 each day.
- Baby Boomer retirement facts tell us 47% of boomers already retired.
- According to the retirement savings statistics from 2019, only 11% of Boomers managed to save up to $500,000 for their retirement.
2021 Retirement Statistics
- The average household retirement income in 2021 amounts to $56,632,
- 71% of employers believe their employees meet all the conditions for a sound retirement.
- In 2021, only 56% of workers enrolled in a workplace retirement plan. 72% of workers had access to retirement benefits.
- American savings expectations for a comfortable retirement increased to $1.04 million in 2021, a 10 percent increase from 2020.
Retirement in the US is getting more and more challenging as time goes by. These retirement statistics attest to that, providing ample insight into the problems and obstacles millions of retirees have to face. Knowing all of these can help you plan for the future, ensuring that you will have secure and peaceful golden years. Need more information to help you feel secure in your retirement? RITA is a professional trade association dedicated to expanding opportunities for all Americans to save and invest for retirement. We exist to be the leading educator and advocate for the self-directed retirement plan industry by providing resources, information, communication, and support to both our members and consumers. When you choose to work with a RITA member, you know you’re in experienced hands.