10 Surprising Retirement StatsDavid Macino
Americans haven’t done a good job planning and saving for retirement. A surprising fact is that many older Americans, particularly the hard-working Baby Boomer generation, have done worse than the subsequent generations they so often criticize. Still, the overall picture remains bleak. Here are 10 surprising retirement stats to consider:
One in three Americans are unprepared for retirement
Thirty-three percent of the United States population is not ready for retirement, having saved nothing at all for their post-work years. Beyond that, 56% of Americans have less than $10,000 saved, and fewer than 20% have saved more than $200,000.
The average amount saved by age 50 is $60,000
When a worker is young, not having more than $60,000 is something fixable. At 50, that problem may be insurmountable. Time ticks onward as these quinquagenarians stare at a short road with a gloomy forecast ahead.
The retirement savings gap is in the trillions
The National Institute on Retirement Security showed that Americans haven’t saved nearly enough, to the tune of as much as $14 trillion.
College debt totaling $30,000 can reduce retirement savings by $325,000
Considerations for student debt should include a number like this. Millennials starting out with $30,000 in debt could see a drastic reduction in their retirement savings, when compared to their peers starting out with none. If a degree carries with it the potential for increased earnings, these could have no effect. However, it’s worth considering.
One-fourth of employees say no to free money
Employers offer contribution matching for retirement savings, up to $24 billion dollars a year. Despite that, most Americans aren’t saving enough to qualify for the maximum contribution match, missing out on upwards of $1,300 per employee.
Forty-seven percent of single seniors and 22% of married couples depend entirely on Social Security
Social Security was never intended to be the sole source of retirement income. The fund itself states that the smart investor won’t expect to get more than 40% of retirement from Social Security. Sadly, this just isn’t the reality for many Americans.
Retirees could spend upwards of $260,000 on health care
Fidelity estimates that the average 65-year-old couple retiring now would likely need more than $260,000 to cover health care expenses they will incur during retirement. That’s before considering nursing home care.
Nearly 50% of retirees spend more, not less, in retirement
Many people believe that retirees naturally spend less; however, the Employee Benefit Research Institute found that almost 50% of seniors do the opposite. The peak period of spending falls in the initial two years after retiring. Thirty-three percent of households maintain that spend rate through the first six years.
Women are less prepared for retirement
The gap between men’s and women’s retirement savings remains wide, at almost 26%. Many factors contribute to this, including the wage gap and the increased likelihood that women will take time off for child-raising and elderly care.
Seniors are the fastest-growing group in bankruptcy
In 1991, just over 2% of retirees over 65 filed for bankruptcy. By the middle of the last decade, that number had climbed to 7%. While untapped accounts up to a specified limit survive bankruptcy proceedings, it ruins credit. Without a job or income, lenders become less willing to help and opening credits cards, securing loans, and renting cars or homes becomes extremely difficult.
If you’re one of the millions of Americans who can stand to improve their savings habits, Macino Financial Services offers you help in building financial stability, security, and independence. If you’re an employer concerned about the financial future of your employees, Macino Financial Services can help.
Call 419-491-0909 today to start your consultation!
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