110+ Retirement Statistics & Trends [2024]

May 3, 2024 0 Comments

55% of people stop working earlier than planned. But they regret it later and sometimes even opt for full-time work. 

Why? Well, money..!

Yes, 44% of retirees face difficulty paying for basic necessities like groceries, housing, etc., despite Social Security providing them around $1800/month. 

Now, you might be asking yourself –

  • Why do they face problems in paying for basic things? 
  • Why don’t they save money for their retirement? 
  • Where do they get money for their needs? Etc. 

Right..? If yes, stick around because this “retirement statistics” article is here to answer these queries. 

Let’s begin – 

Most Interesting Retirement Statistics: Editor’s Pick 

  1. Around 28% of non-retirees have no retirement savings.
  2. 37% of retirees have no retirement savings left.
  3. Almost half of disabled non-retirees have retirement savings.
Disability statusAny retirement savingsRetirement savings on track
No disability7634
Disability4713
  1. Retired individuals use about 1/3rd of their monthly income to cover housing expenses.
  2. 87% of retirees say that the government should do more to help them.
  3. 27% of adults in 2022 considered themselves retired even when they were engaged in work to some extent.
  4. 38% of Americans express concerns about outliving their savings.
  5. 57% of Americans reported losing sleep in 2022 due to retirement-saving stress.
  6. 51% of Americans retire between the ages of 61 and 65.
            Retirement AgePercentage of people retire
            <501%
            50-543%
            55-6013%
            61-6551%
            66-6912%
            70-7410%
            75-794%
            80-845%
            85+2%
            1. Only 18% of people feel they can save enough money for retirement. [8] 

            Retirement Age Statistics 

            1. The average age of retirement is 64.6 for men and 62.3 for women.
            2. Over time, the average retirement age has increased, rising from 57 in 1991.
            3. The expected retirement age has also increased to 66.
            4. The retirement age of the U.S. is 62.

            The lowest retirement age is observed in Alaska and West Virginia, with an average retirement age of 61.

            In contrast, the highest retirement ages are found in South Dakota, Massachusetts, and Hawaii, where people tend to retire at an average age of 66.

            CountryRetirement Age
            United States66
            United Kingdom66
            Canada65
            France63.5
            Greece62
            Italy62
            Netherlands66.3
            Israel67
            New Zealand65
            Mexico65
            Japan65

            Woman and Retirement

            1. Women are more likely than men to make an effort to save more for retirement.
            2. Women are less confident than men in meeting retirement saving goals.
            3. A higher percentage of women (50%) than men (47%) don’t have any personal retirement savings.
            4. On average, women contribute $5,421 to their retirement savings, while men contribute about $9,578, resulting in a 43% gap.
            5. The average 401(k) balance for women is reported to be $59k, whereas men tend to have a balance of $89k.
            6. Men (10%) contribute the maximum amount to their 401(k) compared to women (7%).
            7. Women saved an average of $3,146 in 2022, while men saved approximately $7,007.
            8. 42% of women aim for less than $3k/month in retirement, while only 27% of men have similar expectations.
            9. Only 22% of women have $100,000 or more in their retirement funds, whereas 30% of men surpass this mark.

            Race and Retirement

            1. 44% of Black families have some form of retirement account.
            Race%age
            White65%
            Black44%
            Hispanic28%
            1. Black and Hispanic families typically have around $20k saved in retirement accounts, whereas White families only have approx. $50k saved.
            2. Economic insecurity rates for older singles are higher in Latinos. [36] 
              RaceEconomic insecurity rates
              Latino72%
              Blacks64%
              Asians59%
              Whites47%

              What Are the Factors That People Consider Before Retiring? 

              51% cited a desire to pursue other activities or spend time with family as an important factor.

              47% mentioned retiring because they had reached a normal retirement age.

              30% reported health as a major factor.

              17% mentioned that they retired to care for family members.

              10% reported being forced into retirement or lacking work availability.

              Retirement Finances

              1. 75% of non-retired adults have some form of retirement savings.
              2. Only 43% of non-retired adults expect to be financially comfortable in retirement.
              3. 77% of current retirees reported having enough money to live comfortably.
              4. Approx. half of retirees say they spend less than $2k a month.
              5. Individuals between 65 and 69 years old in the top 1% income bracket saved nearly $2.7 million for retirement.
              6. 401(k) accounts are the most popular retirement savings vehicles among working-age Americans.
              7. 18% of working-age individuals have an Individual Retirement Account (IRA).
              8. 71% of non-retired adults express moderate worry about their retirement savings, with 42% stating they are apprehensive.
              9. 47% of non-retirees had retirement savings outside of formal retirement accounts.
              10. 43% of Retirees with debts reported that their debt levels are easily manageable.
              11. In 2023, the median retirement income is $47,620.

              Healthcare Cost for Retirees 

              1. Someone retiring at 65 this year can expect approximately $157,500 on healthcare throughout their retirement.
              2. As of 2022, the annual average cost for healthcare treatment related to Alzheimer’s and Dementia in adults aged 60 and above is $48,701.
              3. A retiree spends about $4,300 from their pocket annually on healthcare expenses.
              4. About 70% of retired individuals have enough money to cover their expenses for 3 months in case of an emergency.

              How Much Do Americans Need to Retire?

              32% of Americans believe they need over $1 million for a well-funded retirement, but 45% report that saving that much is unlikely.

              How Much Money Do Americans Need to Retire Comfortably? 

              How Much Money Do Americans Need to Retire Comfortably?% of Americans
              Don’t Know25%
              $20,000,001 or more3%
              $10,000,001 – $20,00,0001%
              $5,000,001 – $10,000,0003%
              $3,000,001 – $5,000,0005%
              $2,000,001 – $3,000,0007%
              $1,000,001 – $2,000,00013%
              $750,001 – $1,000,00010%
              $500,001 – $750,0008%
              $250,001 – $500,0008%
              $150,001 – $250,0007%
              $150,000 or less10%

              When Do People Start Saving For Retirement?

              The average age at which Americans begin saving for retirement is 31 years old. [50] [51] 

              AgePeople started saving
              20s40%
              30s1/4th
              40s or beyond1/4th
              Before 208%

              Are People Able To Save Enough to Retire?

              52% of American workers say it’s likely they’ll be able to save enough to retire comfortably. 

              45% think it’s unlikely they’ll have enough, and 3% don’t know.

              Why Didn’t Retirees Save For Their Retirement? 

              The most common reason was that their employer didn’t help them.

              60% of retirees state that their former employers didn’t adequately assist them in preparing for retirement.

              Employers didn’t help enough60%
              Income wasn’t enough53%
              Didn’t have access to retirement plan47%

              How Many People Feel Their Retirement Savings Are on Track? 

              Only 40% of non-retirees with a retirement account believe their savings are on track for retirement.

              17% of women reported feeling on track to meet their financial goals, whereas this percentage is 26% in men.

              People between 18-29 years of age are less likely to feel that their retirement savings are on track. 

              Age GroupAny retirement savings Retirement savings on Track
              18-245724
              30-447232
              45-598134
              60+8841

              38% of Asian retirees feel that their savings are on track.  

              RaceAny retirement savingsRetirement savings on track
              Asian8438
              Hispanic5620
              Black6022
              White8037

              What Are The Sources of Income For Retirees? 

              Social Security remains the primary source of retirement income for most retirees. 

              30% of retirees depend Solely on Social Security Payments for living, even when it’s not enough. Also, it serves as the primary source of income for 79% of retirees.

              Sources of Income For Retirees

              • Social Security (79%)
              • Personal savings (35%)
              • Retirement fund (e.g., 401(k), Roth IRA, or other retirement savings) (34%)
              • Company/employer-funded pension plan (26%)
              • Investments (e.g., C.D.s, stocks, etc.) (17%)
              • Inheritance (7%)
              • Financial support from a government agency (6%)
              • Part-time employment (4%)
              • Real estate investing (3%)
              • Financial support from children (3%)
              • Income from consulting or owning a business (2%)
              • Cryptocurrency (2%)

              Social Security and Retirement

              1. The projected average monthly Social Security retirement amount is $1,827.
              2. The total distribution of Social Security benefits is expected to surpass $1.4 trillion in 2023.
              3. In 2022, Retired workers collectively got 76.9% of all Social Security benefits.
              4. 37% of men and 42% of women rely on it for more than half of their income.
              5. Nearly 97% of individuals aged 65 and above get or will get Social Security benefits.
              6. In 2020, women constituted around 55% of adult Social Security claimants.
              7. About 40% of seniors depend on Social Security funds as a key source of their retirement income.
              8. In 2023, an estimated 67 million Americans received monthly Social Security benefits.

              Effect of Retirement on Living Standard

              Around half (45%) of retirees feel their living standards have declined since they stopped working.

              44% find it challenging to afford basic living expenses like groceries, housing, utilities, etc.

              Things Retirees face difficulty paying for

              • Groceries (31%)
              • Utilities (26%)
              • Gasoline (24%)
              • Credit card bills (22%)
              • Phone/internet/cable bills (19%)
              • Medical bills (17%)
              • Mortgage/rent bills (16%)
              • Insurance bills (16%)
              • Debt repayment plans (9%)
              • Car payments (9%)
              • Subscriptions (6%)

              Inflation Effect on Retirement 

              1. One-fifth of Americans are delaying retirement.
              2. 83% of retired people feel that rising costs impact their retirement savings.
              3. 41% of Americans stopped contributing to a retirement fund due to the increased cost of living.
              4. 32% withdrew funds from their retirement savings to cope with inflation.
              5. 5% of Americans are planning to relocate somewhere more affordable after retirement.
              6. 1 in 12 Americans believe they’ll never retire.
              7. Retirees have to cut back on their spending on things because of inflation.

              Impact of Inflation on Retirement Savings 

              Major43%
              Minor40%
              No impact17%

              Do Retirees Want to Work After Retirement? 

              10% of retirees are engaged in part-time work compared to 3% in full-time positions.

              52% of employees express plans to work during their retirement.

              Retirees with higher education levels were more likely to continue working in retirement. 

              • 18% of those with a bachelor’s degree or more are still working, compared to 9% with a high school degree or less.

              However, 53% of people are concerned about health problems while working in retirement.

              What Are the Common Regrets Among Retired People? 

              The most common one is their understanding of retirement savings. 67% expressed a wish for a better understanding of retirement savings during their working years.

              63% feel that they should have managed their money properly.

              58% regret not knowing the money needed to retire.

              57% repent for not starting saving sooner.

              40% didn’t know that their savings would be taxed even after retirement.

              34% feel that they have spent too much of their savings, and 29% repent for pulling out their savings early.

              Why Did Retirees Stop Working Early? 

              Over 55% of people retired earlier than planned.

              Why did retirees stop working earlier than planned?

              • Health issues (50%)
              • Taking care of family (16%)
              • Being tired of working (15%)
              • Being laid off or fired and choosing not to find a new job (11%)
              • Accepting an early retirement plan (10%)
              • Having enough saved (7%)
              • Having an unexpected financial gain (3%)
              • The economy/stock market being good (2%)

              Why Do Retirees Repent of Retiring Early? 

              39% of retirees reported regretting leaving the workforce so soon

              The top reason for this is that they failed to save enough money.

              Other reasons are – 

              1. Bored of not working (37%).
              2. Have insufficient money (37%).
              3. They wish to have discretionary income (i.e., money to spend on nonessentials) (34%).
              4. Claimed Social Security too early (32%).
              5. Didn’t know their living standard would change a lot (29%).
              6. They could have paid off more debt (29%).
              7. They wish they had better health insurance (13%).

              How Many Employers Offer 401(k) or Similar Retirement Plans? 

              There are many factors that affect the access to retirement plans at work like – 

              Work-Type 

              78% employers offered a 401(k) or similar employer-sponsored plan to full-time workers. However, only 80% of employees chose to participate. 

              Work-typeEmployers offer 401(k) or similar employer-sponsored planEmployees participated
              Full-time77%80%
              Part-time51%59%

              Size of Businesses

              Employees at small businesses are less likely to have access to retirement plans.

              Education level

              82% of workers with a college degree are offered a plan and 87% said yes to it. 

              Only 67% of employers with bachelor’s degrees had access to such a plan, and 74% chose to participate. 

              Area

              66% of Rural workers are offered a retirement plan and 72% of workers participated. 

              74% of non-rural employees were introduced to such plans. Talking about participation, 80% of employees participated. 

              Race and Ethnicity

              Black respondents (80%) were most likely to be offered a retirement plan. But only 65% of them accepted it. [58] [62] 

              Race and EthnicityAccess to an employer-sponsored planPercentage of people who accepted the plan
              Black80%65%
              Hispanic73%79%
              Asian-Americans and Pacific-Islanders76%78%
              White71%80%
              1. 34% of retirees prefer working part-time to generate needed income.
              2. 56% of Americans admit they are behind on saving for retirement.
              Status of retirement savingsPercentage of people
              Behind 56%
              Significantly behind37%
              Ahead of where they should be16%
              Significantly ahead6%
              Right on track21%
              1. Nearly 67% of Americans aged 50 to 74 lack a formal retirement plan.
              2. Since the onset of the COVID-19 pandemic, 72% of people have reevaluated their retirement plans.
              3. 61% of Americans believed their retirement financial plans would improve by 2023.
              4. 71% of retirees carry non-mortgage debt into their retirement years.
              5. 36% stated that they worked for pay or profit despite being retired.
              6. 60%, reported having a spouse who worked for pay or profit in the same period.
              7. The median age of retirees who included labour income in their family income was 65, compared to the overall median retirement age of 69. 
              8. 61% of non-retirees with self-directed retirement savings expressed low levels of comfort in investing.

              Among those with self-directed savings, gender differences were observed in comfort levels with retirement investments. 

              Here’s the table showing the difference – 

              GenderHigh school degree or lessBachelor’s degree or moreSome college
              Men 366041
              Women223227

              How Many People Don’t Have Retirement Savings? 

              32% of working-age Americans have no retirement savings.

              Are Retirees Satisfied With Their Retirement? 

              In 2022, retirees rated their satisfaction in retirement as 7 on a scale from 1 to 10.

              Did Covid-19 Have Any Impact on Retirement? 

              Some 30% of seniors said that the pandemic had a “negative impact” on their retirement plans.

              Where do retirees live? 

              The most prevalent type of housing for older adults was independent living, accounting for 49.8%.

              Nursing care facilities constituted 28.8% of housing for older adults.

              Assisted care facilities accommodated 21.4% of older adults.

              Ending Up…

              Retirement has transformed into a concern instead of enjoyment because of lack of sufficient savings.  

              Shockingly, Only 43% have confidence that they can live comfortably post-retirement.

              The rest repent later, realizing that they should have started saving sooner. 

              So, regardless of where you are in your life, prioritize saving now so that you don’t have to struggle later in your life. 

              Sources 

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