Retirement can be a daunting prospect, but it's also an opportunity to enjoy the fruits of your labor and take a well-deserved break from the daily grind.
Published On:
October 1, 2023
Retirement can be a daunting prospect, but it's also an opportunity to enjoy the fruits of your labor and take a well-deserved break from the daily grind. To help you better understand the retirement landscape, here are 39 retirement statistics that shed light on everything from retirement savings and planning to the state of retirement in the U.S. and around the world.
The average retirement age in the U.S. is 62 years old.
Social Security benefits account for at least half of retirement income for 50% of married couples and 70% of unmarried individuals.
The average life expectancy in the U.S. is around 78 years old.
Healthcare costs are a major concern for retirees with an average of $295,000 needed to cover healthcare expenses throughout retirement.
Only 17% of American workers are very confident they will have enough money to retire comfortably.
Women are more likely than men to face financial insecurity in retirement due to lower earnings and longer life expectancies.
Over half (54%) of Baby Boomers plan on working past age 65 or not retiring at all.
The median retirement savings balance among households headed by someone aged 55-64 is $104,000, according to the National Institute on Retirement Security.
Inflation can significantly impact your purchasing power over time, with prices doubling approximately every 20 years on average.
Retirement Statistics by Age
Retirement Statistics for Ages 50-59
The average retirement savings balance among households headed by someone aged 50-55 is only $124,831.
Only 20.3% of workers aged 55 and older participate in a pension plan.
About 35% of retirees ages 65 and over rely on Social Security as their sole source of retirement income.
The percentage of households with a defined benefit pension plan declines from 25.1% for those aged 55 to 64 to just 13.4% for those aged 65 and older.
Over half (57%) of workers aged 60 or older have less than $100,000 saved for retirement.
Retirement Statistics for Ages 60-69
On average, Americans retire at age 62. However, many continue working past this age or return to work after retiring.
For those aged between 60 and 69 years old, the median household's net worth is approximately $224,000.
Roughly one-third of all Medicare beneficiaries report having difficulty paying their medical bills or affording prescription drugs.
The average monthly Social Security benefit in January of this year was $1,543 per month.
According to the Employee Benefit Research Institute (EBRI), the percentage of people who expect to work during retirement increased from just over one-quarter (26%) in the early years of the millennium to nearly half (47%) in recent years.
Retirement Statistics for Ages Over 70
Approximately two-thirds (66%) of retirees report living on less money than they did when they were working full-time jobs.
Among households headed by someone aged over 75 years old, only about half have any retirement savings at all.
More than one-third (37%) of seniors aged over 70 still carry mortgage debt on their primary residence while roughly 20% of seniors over 75 years old still have student loan debt.
According to the Bureau of Labor Statistics, Americans aged over 75 spend more than twice as much time watching TV as they do on hobbies and interests.
The average monthly Social Security benefit for retired workers in 2021 is $1,543.
Retirement Statistics by Gender
Women are more likely than men to face financial insecurity in retirement due to lower earnings and longer life expectancies.
The average Social Security benefit for women in 2021 is $1,295 per month, compared to $1,589 for men.
According to the National Institute on Retirement Security, women aged 65 and older have an average income that is 25% lower than men's.
Women are also more likely to take time off from work to care for children or aging parents, resulting in less time and opportunities to save for retirement. In fact, only 45% of working-age women participate in a workplace retirement plan, compared to 55% of men.
Additionally, women tend to live longer than men on average, which means they need more money saved up for a longer retirement. However, many women fall short of their savings goals - around one-third of women have no retirement savings at all.
Cost of Retirement Statistics
Source: https://www.aag.com/
According to a recent study, the average retirement cost in the U.S. is estimated to be around $738,400.
Healthcare expenses are expected to be one of the biggest costs in retirement, with an average 65-year-old couple needing around $300,000 to cover out-of-pocket medical expenses throughout their retirement.
The average annual cost of nursing home care in the U.S. is approximately $100,000 per year.
Based on current trends, experts estimate that college tuition costs will continue to increase by about 5% per year, making it more challenging for retirees to support their children or grandchildren's education.
Inflation can significantly impact your purchasing power over time, with prices doubling approximately every 20 years on average - meaning that a retiree who needs $50,000 per year today will need $100,000 per year in 20 years at a 2% inflation rate.
Retirement Savings and Planning
According to a survey by the Employee Benefits Research Institute, only 41% of workers have calculated how much they need to save for retirement.
A report by the National Institute on Retirement Security found that the median retirement account balance for working-age Americans is just $3,000, far below what's needed to sustain retirement.
A survey by Bankrate.com found that only 25% of Americans have an emergency savings fund that covers at least six months of expenses.
A report by the Federal Reserve found that 31% of non-retired adults have no retirement savings or pension whatsoever.
State of Retirement in the U.S.
A study by the Transamerica Center for Retirement Studies found that 45% of U.S. workers plan to retire after age 65 or do not plan to retire at all.
According to a report by the Social Security Administration, the average monthly benefit for retired workers in 2021 is $1,543.
A survey by the Employee Benefit Research Institute found that 62% of workers plan to work during retirement, either to supplement their income or to stay active.
A report by the National Institute on Retirement Security found that the retirement income deficit for Americans ages 32-64 is estimated to be $4.3 trillion.
Retirement Trends Around the World
According to a survey by the Global Aging Institute, the average retirement age in developed countries is 64.
A report by the Organization for Economic Cooperation and Development found that the average retirement age in the European Union is 64 for men and 63 for women.
A study by the Australian Bureau of Statistics found that the average retirement age in Australia is 55.8 for women and 58.2 for men.
A report by the National Bureau of Statistics of China found that the average retirement age in China is 55 for women and 60 for men.
Social Security Trends
Source: https://www.retireguide.com/
The maximum monthly Social Security benefit for a worker retiring at full retirement age in 2021 is $3,148.
In 2020, the average monthly Social Security benefit for retired workers was $1,514.
The earliest age a person can start receiving Social Security retirement benefits is 62 years old, but the benefit amount will be reduced by up to 30% if they choose to retire early.
As of December 2020, there were approximately 45 million retired workers receiving Social Security benefits in the U.S.
According to a report by the Social Security Administration, the trust funds that support Social Security's retirement and disability programs are projected to become depleted in 2035 if no changes are made to the program.
Conclusion
Retirement is a significant milestone in one's life, and understanding the retirement landscape can help you better prepare for this phase. The statistics presented in this article highlight the importance of saving early and regularly for retirement, as well as the need to plan for healthcare costs and inflation.
Women face unique challenges when it comes to retirement planning due to lower earnings and longer life expectancies, making it essential to address these issues in financial planning.
While there are concerns about the state of retirement in the U.S. and around the world, taking proactive steps towards saving and planning can help individuals achieve a comfortable retirement.
