30 Revealing Retirement Stats
Home Blog 30 Revealing Retirement Stats [2020]

30 Revealing Retirement Stats [2020]

by Darko Jacimovic

The importance of saving for retirement is often neglected, as many people fail to address this issue. We’re going to shed some light on this topic and list some of the latest and most fundamental retirement stats.

Today, we’re able to witness an increase in the working population who are over the retirement age limit. This issue has become more pronounced in recent years, as we went through a couple of financial crises, including a major one.

Paying attention to the facts presented below might help thousands of individuals think twice about their incomes, especially when retirement pops its head around the corner.

Without further ado, let’s delve deeper into this topic.

Top 8 Enlightening Retirement Statistics & Facts (Editor’s Choice)

  • Shockingly, 33% of all Americans say they don’t have any retirement savings
  • Half of all Americans start saving for retirement after they turn 36
  • Alaska residents save, on average, $271,919 for retirement
  • Wyoming residents save the least amounts for retirement, $153,182 on average
  • The average yearly income of a retiree household is $48,000
  • Households with retirees over 75 record the lowest incomes, $49,614 on average
  • 68% of all baby boomers state they want to continue working after they turn 65
  • 85% of Americans use various types of retirement plans, including a 401(k)

Average Retirement Savings Statistics

Retirement Stats - photo

1. 22% of Americans have less than $5,000 in retirement savings.

(Source: CNBC)

Retirement reports indicate that more than a fifth of American workers has put under $5,000 in their retirement savings accounts. It is estimated that 5% of workers in the US have saved approximately $5,000 to $24,999, while just 16% have saved $200,000 or over.

Furthermore, 46% of Americans have no idea of the amount they have saved for retirement, which, according to this retirement statistic, is truly worrying, to say the least.

2. 33% of Americans have no retirement savings.

(Source: CNBC)

If less than half of all Americans have no clue as to how much they have saved, shockingly, a third of US citizens have no retirement savings at all. This includes every worker across America, even those who are 20 years old or younger, who have plenty of time to start saving for retirement.

3. 48% of Americans start their retirement savings after the age of 36.

(Source: Statista)

According to these retirement saving statistics, almost half of the US labor force starts saving for retirement after turning 36. Even though this may not seem like a late game-changing shift, it still puts them at a significant disadvantage compared to those who started saving in their 20s.

4. Millennials have a median total of $23,000 saved for retirement.

(Source: Trans America Center)

The latest recruitment survey of workers in the United States indicates that millennials’ median amount of retirement savings is $23,000.

Baby boomers retiring stats show that millennials save seven times less than the baby boomer generation. However, it’s good to point out that the majority of millennials are keeping up with the recommended savings and would have one year’s salary worth in retirement funds by the age of 30.

5. People aged 32 to 37 have $32,602 saved for retirement, on average.

(Source: The Balance)

American workers in their 30s are not so good at keeping up with the recommended retirement contributions.
Retirement savings statistics by age point out that they are typically at less than half of the recommended $67,000. Those between the ages of 38 and 43 have an average of $61,933 saved for retirement.

6. People aged 44-49 have $113,370 saved for retirement, on average.

(Source: The Balance)

With a median income of $67,000, American workers in their mid to late 40s manage to save over $80,000 on average. Namely, the average amount saved for retirement for this age group sits at $113,370.
Now, let’s turn our attention toward the retirement numbers for people residing in different states across America.

Retirement Savings Statistics by State

Retirement Stats - money

7. Delaware has the highest average retirement savings, at $286,277.

(Source: Financial Samurai)

The tax benefits Delaware offers really shine through. This is the state with the highest average retirement savings in the country.

The fact that there’s no state income tax, untaxed Social Security benefits, no personal property tax, and many more benefits have contributed to this status.

8. The average retirement savings in Alaska are at $271,919.

(Source: Financial Samurai)

When it comes to the retirement statistics by state, Alaska is near the top of the list of US states and is now ranking fourth. Again, low taxes are to thank for this; Alaska has no state and local taxes on retirement income. This applies to both public and private pension income.

9. The average retirement savings in Virginia are at $240,199.

(Source: Smart Asset)

Even though the state is just a thousand dollars short of entering the top 10 US states by average retirement savings list, Virginia is still considered one of the more pensioner-friendly states.

Retirement stats and retirement income figures for this state are aided by no local taxes and the low state tax (under 1% for pre-tax income of $40,000).

10. The average retirement savings in California are at $227,290.

(Source: Smart Asset)

California ranks 20th on the list of US states by retirement savings. The Golden State also has no local retirement income taxes, while its state tax stays below the 1% mark.

However, the state fully taxes withdrawals from retirement accounts, as well as both the public and private pension incomes. According to these retirement trends, it is not considered a pensioner-friendly state.

11. The average retirement savings in New York are at $207,889.

(Source: Zippia)

NYS retirement savings place the Empire State in the bottom half of the list. The state of New York holds the 34th spot on the list of states by average retirement savings. Its retirees are moderately taxed, with reasonable state tax, and no local one.

However, baby boomer retiring statistics suggest that this state’s drawbacks are the partial taxing on retirement account withdrawals and private pension income.

Additionally, New York is also one of the worst states for baby boomer retirees.

12. The average retirement savings in Wyoming are at $153,182.

(Source: Zippia)

Wyoming holds the shameful last place on the list of US states by average retirement savings, despite sharing some features with the states on the opposite end of the list. Wyoming has no Social Security income tax, no taxes on public and private pension income, and no taxes on retirement account withdrawals. It is considered very tax-friendly for retirees.

Retirement Income Statistics

Retirement Stats - thinking

13. The average retiree household has a yearly income of $48,000.

(Source: USA Today)

Older American households with a retiree’s head have an average income of $48,000. They typically spend $46,000 per year. When all US households are taken into account, the average income is $74,000, while the yearly expenses add up to $57,000.

14. Social Security is the biggest source of income for 61% of the retired.

(Source: USA Today)

Statistics on retirement find that Social Security is contributing close to half of the average pensioner’s yearly budget. More than $1 trillion in benefits are provided on a yearly basis. In 2019, the monthly stipend was $1,461 per retired worker.

15. 50% of American households won’t be able to maintain their standard of living in retirement.

(Source: GoodLife)

It is estimated that half of US workers will not be able to keep the same standard of living once they retire due to the lack of financial support. This doesn’t only mean that they’ll be unable to travel and buy cars and expensive things, but they could also struggle with affording necessities like food, as numerous retiree statistics indicate.

16. Households aged 65-69 have an average retirement income of $79,772.

(Source: United States Census Bureau)

After retiring, those between the ages of 65 and 69 can expect to bring in just a little under $80,000 per year per household. This means that a monthly income of $6,647 might be enough to cover all expenses and necessities of the household, while also having enough for the other little pleasures of life.

17. Households aged 70-74 have an average retirement income of $68,052.

(Source: United States Census Bureau)

Retirement age statistics show that average retirement income drops significantly with age. Namely, those between the ages of 70 and 74 can expect to earn at least $10,000 less than those 5-10 years younger.

The median retirement income also drops significantly with age. For this age group, it sits at $46,797.

18. Households aged 75 and over have an average retirement income of $49,614.

(Source: United States Census Bureau, GoodLife)

Elderly households in America are struggling to survive nowadays. With a median retirement income of $31,893, it’s no wonder that more and more US workers are deciding to keep working in their late 70s.

It’s an issue that continues to be a problem across the US, and one that needs to be dealt with promptly.

Baby Boomers Retirement Statistics

Retirement Stats - grandparents

19. Around 10,000 baby boomers retire every day.

(Source: Investopedia, USA Today)

It is estimated that there are around 73 million baby boomers in the US today (not all of them in the workforce, of course). With 10,000 members of this age group retiring every day, we need to address the question of how many of them are able to enjoy their retirement in comfort.

20. Those aged 56-51 have $163,577 saved for retirement on average.

(Source: The Balance)

As this generation approaches the typical retirement age (65), baby boomers retirement savings statistics show they usually save 16.35% of the $1,000,000 that experts recommend as the retirement goal.

This is the number one issue on the list of baby boomers retirement problems, and it might be the reason why so many of them plan to continue working after the age of 65.

21. 17% of baby boomers have saved under $5,000 for retirement.

(Source: CNBC)

A large portion of the generation might not be able to retire, baby boomers retiring statistics show. This generation is between the ages of 55 and 73, and a massive chunk of them have less than $5,000 in retirement savings, which will not get them far if they decide to stop working.

22. 45% of baby boomers have no retirement savings.

(Source: Investopedia)

Around 90% of those who retire are eligible for Social Security benefits. In 1962, that number was 69%. Even with the $1,461 that Social Security brings in every month, a large part of the baby boomer population won’t be able to retire, as they have no funds dedicated to retirement.

23. 68% of baby boomers plan to retire after the age of 65.

(Source: Northwestern Mutual)

Retirement plan statistics show that 47% of Americans believe they’ll be working after the age of 65 out of necessity. Consequently, 17% of all baby boomers have less than $5,000 in retirement savings, and about 20% state they also have less than $5,000 in personal savings too.

24. A third of baby boomers plan on working part-time after the age of 65.

(Source: USA Today)

Around 33% of middle-aged Americans plan to work part-time after they reach their retirement age because their retirement savings prevent them from retiring fully. They also believe that their health, education levels, and experience enable them to do so, as labor statistics show that 91% of companies choose people with experience.

Retirement Stats 2020

Retirement Stats - people

25. 85% of Americans use a 401(k) plan to save for retirement.

(Source: Northwestern Mutual)

401(k) is, undoubtedly, the most popular retirement saving method in the US. The average account of an American worker in their forties has $103,500 in it. This popularity stems from the contribution matching what some employers offer.

26. A whopping $11 trillion retirement assets are recorded over various IRAs.

(Source: Statista)

IRAs, or individual retirement accounts, are another popular retirement saving vessel. These accounts offer tax deductions based on the contributions made during the year. According to US retirement statistics, Americans had $11 trillion in traditional, Roth, SEP, and SIMPLE IRAs.

27. The total value of the US federal government retirement funds exceeds $4 trillion.

(Source: Statista)

The total financial assets available in federal government retirement funds added up to just over $3 trillion in 2010. A decade later, there are a trillion more available to those who are retiring, as these retirement facts stress.

However, the US’s pension system is still commonly described as “in an acute state of crisis.”

28. 53% of Americans who won’t retire at 65 will keep working by choice.

(Source: Northwestern Mutual)

More than half of American workers who plan to work past the age of 65 will do so by choice. Approximately 58% of those who declared they’ll work after the typical retirement age say they will do so because they enjoy their job.
These fun facts about retirement also show that 39% plan on not retiring in order to avoid being bored and becoming inactive, while 46% will continue working because they want additional income.

Regardless of the reason, we can see a clear tendency for Americans to continue working even after they hit their retirement age.

29. 45% of Americans believe they’ll have enough in retirement funds.

(Source: CNBC)

Even though American retirement savings statistics show that 41% of them are not contributing a cent to their retirement savings, 45% of Americans believe that, when the time to retire comes, they’ll have enough money saved to last them until they die.

30. The US had a retirement index of 6.6 in 2019.

(Source: Statista)

Using a basic scale of 1 to 10, a country’s retirement index is based on a number of factors (income, savings, etc.). The US had a retirement index of 5.57 in 2012, which has increased to 6.6 in 2019. This is not an insignificant rise at all, even though it signals only a slight increase.

Retirement Stats Summary

Retirement savings are one of life’s most crucial aspects that is often completely forgotten quite easily.

Getting into a habit of putting aside a small sum of your income for retirement is best done early in life. Those who start saving in their 20s will have fewer issues when retirement knocks on the front door than those who start saving in their 40s.

We truly hope the facts we presented in this article will make you think seriously about saving early for retirement.

Frequently Asked Questions (FAQ)

What percentage of Americans are retired?

More than 49.2 million Americans are retiring every year, 15.1% of which wait until they turn 66, while 61.9% retire till their 60s. Men account for 45.26% of all retired Americans, while 54.74% are women.

It’s important to note that many people work even in old ages, regardless of the median retirement age in the US. The median retirement age for people with poor health is 65, while the most common retirement age for healthier people is 62.

How much do Americans has saved for retirement?

Median retirement savings vary by age. Nearly two-thirds of Americans have less than $100,000 in their savings account before retirement. Most people are pressured by the burden of housing costs, as 28% of them have less than $50,000. Around 36% of Americans aged 60-69 have $100,000 to $500,000 saved.

However, these numbers aren’t what most Americans get to save. Here are the amounts people save per age groups:
  • 20s: $16,000
  • 30s: $45,000
  • 40s: $63,000
  • 50s: $117,000
  • 60s: $172,000

How many Americans have no savings for retirement?

Almost 40 million households in America have no savings for retirement. They have around $4.3 trillion less than they should have had for their retirement.

Many people rely on social benefits, but they don’t provide enough money for a decent life. The American savings gap is equivalent to the income gap.

People with low salaries have more debt and fewer savings. According to the latest data, 45.1 million retired Americans receive social benefits, and this percentage is likely to increase in the future.

What is a good retirement percentage?

There are many recommended ways to save money for your retirement. Typically, you should save at least 15% of your annual pre-tax income for retirement, if we take into consideration that you will be saving from age 27 to age 65.

However, there are some rules for saving money, like the one dubbed “multiply by 25”. It estimates how much savings you’ll need in retirement by multiplying your annual desired income by 25. It should estimate how much money you can withdraw annually.

How much does the average person have when they retire?

In 2018, an average person had around $95,000 in their 401(k) plans. Retirement account balances vary by age and some other financial factors, like household income, educational costs, income, and education.

For example, a study shows the estimated savings of baby boomers as of 2017 were $164,000, while generation X and millennials saved $72,000 and $37,000, respectively.

The study found that 14% of millennials had $0 to $4,999 saved, while 42% of baby boomers saved $250,000 or more.

How much does the average baby boomer have saved for retirement?

The median balance an average baby boomer has on their account for retirement is around $144,000. If we take into consideration the fact that people aged 65 or over spend around $41,000 on average, their average savings aren’t enough.

Furthermore, people who don’t save money in 401(k) or Roth IRA must pay withdrawal taxes every year. Some experts claim that people should have $1 million saved when they retire, so baby boomers with average savings should somehow compensate by working longer or delaying retirement.

What is the average 401k balance for a 65 year old?

The average 401(k) balance for a 65-year-old is $422,960. The average age of retirement for Americans is 62, so it’s not surprising that savings start to decline after retirement.

There are some things every retiree should consider even when they stop accumulating wealth, like creating a plan regarding money withdrawal, making decisions about Medicare, and evaluating additional insurance expenses.

Even if the average savings in pre-retirement age are around $500,000, it’s actually not enough to live comfortably after retirement.

How do retirees spend their time?

Interestingly, retirees spend only 1.7 hours more on daily leisure activities than others. What they typically do is spend more time on mundane activities, such as eating or household chores. They mostly sleep and watch TV.

Apart from that, they spend time in leisure activities like reading, socializing, and relaxing, although they spend less than one hour on each activity.

Retirees linger over meals for 1.42 hours every day and spend around one hour on shopping. They also do household chores and work (many retirees work over one hour every day).

How many years does the average person live after retirement?

Some studies show that the age when people retire has a big impact on how long a person will live after they stop working.

If you retire at 55, you’ll most likely live until the age of 82. On the other hand, the people who retire at 65 have only 18 months more left to live.

The explanation for this is that the people who retire early can invest in their health more, whereas the ones who work until age 65 most likely work themselves to the grave, as numerous retirement stats show people’s willingness to continue working past the retirement age.

Related Posts

Leave a Comment

Free WordPress Themes, Free Android Games