The Ultimate List of Retirement Statistics for 2022
Retirement should be a time to relax and let go, but in reality, it’s a time of worrying about finances for most Americans.
No matter how much you’ve managed to put away so far, there always seems to be more to do.
This means preparing for retirement involves not just having a secure job but also getting your finances in order.
In today’s economy, it can be challenging to save money and ensure that those savings are even there when you need them most.
On the flip side, there are many retirement benefits available for those that think ahead; you can find a way to live out your golden years without losing everything you’ve worked for.
This article will discuss some critical retirement statistics you should be aware of related to both the present and the future.
These stats can help you prepare for retirement or show you that your current priorities are just fine.
Let’s get right into it.
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(The Federal Reserve)
The Federal Reserve conducted a study of Americans and found that around 1 in 7 does not have any assets for their retirement.
That means the vast majority of us will either have to work until it’s physically no longer possible, count entirely on social security, or find another plan altogether.
While it’s certainly possible to rely entirely on Social Security, you might want to consider other options as well.
2. 60% of those who haven’t yet retired and own an IRA or 401K aren’t comfortable managing these funds.
(The Federal Reserve)
Managing your assets in retirement accounts should be something you become familiar with when preparing for your retirement.
While many experts can help you with your investments, it is always best to go in with an idea of what you’ll need and how you plan to achieve it.
It is better to ask questions now while there is time to find the right answers, rather than not at all, and then find yourself without the resources to enjoy your golden years.
This worrying retirement statistic is not entirely surprising, considering that many people are unaware of their potential financial situation down the line.
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If you’re among those who have no idea how much savings will be enough for your retirement, you’re not alone.
With that said, there are many tools available to help you determine how much you should be saving, along with investment apps that can help you save up little by little.
4. Non-mortgage debt is responsible for the inability to save for retirement, according (to 70% of people surveyed.)
While many associate mortgage debt as a cause of inability to save for retirement, this inability is more closely linked with other kinds of debt.
Survey results showed that while some people do struggle with mortgage debt, most struggle with other debts, including car payments and credit card bills.
This means that it’s more challenging to plan a way around various obstacles unless you have a solid plan for saving.
5. Two of every three workers have debts related to student loans that affect their retirement savings abilities.
Student debt is one of the most significant issues facing Americans today because many people struggle to keep up with payments or end up defaulting on their loans.
If this happens to you, this debt doesn’t just affect your credit rating.
It can also leave lasting scars if you’re carrying around this burden when you’re in retirement age and don’t have much money saved up for that time.
The good news is you can pay off your student debt faster than before by taking advantage of various repayment options found on the market today.
With many startup business credit cards helping those with bad (or no) credit that want to start their own business, there are ways to increase your income and pay off debt faster than ever before.
The problem here is that many people aren’t confident they’ll be able to retire comfortably, which means most people see retirement as something they need to work towards rather than something they’re looking forward to.
Compounded with the fact that some people feel their job isn’t very fulfilling or makes them miserable, this statistic doesn’t paint a pretty picture.
In addition, it is not only essential to consider how comfortable you’ll be in retirement, but it’s just as important to think about when you’ll be ready for the next stage of your life.
7. A large portion of Americans (71%) are scared that there won’t be any social security left when it’s time for them to retire.
Social Security is a long-term federal program that provides benefits for those in retirement.
Unfortunately, many Americans are concerned about the future of this system and what it will mean for them as a retiree.
While having a backup plan through social security doesn’t hurt, it might be more beneficial to focus on other financial aspects so you have the resources you need to enjoy your retirement and live comfortably.
Having defined contribution plans, like a 401k or a 403b, can also help you keep track of your money for retirement.
(Transamerica Center For Retirement Studies)
When it comes to retiring, writing a plan down is a great way to visualize your future and figure out how to accomplish your goals.
Having a written plan you can refer back to now and again is better than not having one because it will help you stay on track as time goes by.
This is especially important since many people make unnecessary mistakes when they don’t plan and aren’t thinking about long-term goals.
Not only does research show that only 54% of people have a strategy to retire, but just 12% of these people have a solid plan that’s down on paper and ready to execute.
If you haven’t created such a plan yet, it might be time to consider it.
In such a plan, make sure to include any traditional IRA, Roth IRA, or other retirement funds that you’re thinking about investing in.
9. As many as two out of every three people don’t have more than $100K in savings for their retirement years.
Savings play a critical role in retirement because the more you have, the longer you’ll be able to afford the lifestyle you want.
While the $100K figure isn’t all that bad, it’s still a little disheartening to realize that that figure won’t be able to sustain people for very long in a few years.
While the $100K number comes from TD Ameritrade, it’s important to remember that you should make estimates based on your financial situation.
This will help you see how retirement would stack up with your specific lifestyle in mind.
(U.S. Office of Personnel Management)
Depending on your financial situation, retirement at the age of 62 could be a wise decision if you have enough saved up to get by.
Having employee benefit programs can help give you a boost in your savings and make retiring earlier easier.
Of course, this also means it will be challenging to save money for your future because you’ll be out of work – but if you want to enjoy your retirement years, the same rules don’t apply to everyone equally.
It’s also a great reason to consider various AI investing software and apps that might help you build up your financial assets.
(U.S. Census Bureau)
The more people retire, the fewer people work and pay social security.
This will lead to fewer employees paying for a larger group of retired Americans, which may cause issues down the line if something isn’t done about it.
Retirement comes with tradeoffs when social security is concerned. This statistic shows that the country might have to adjust the direction it’s currently heading in, to avoid any significant problems.
12. By 2028, 42 million people will fall under the category of people working that are 55 or older. This amounts to almost one-fourth of all workforce in the U.S.
(U.S. Bureau of Labor Statistics)
Working after you retire can help make your golden years last longer.
For some people, even if it’s just a part-time job to bring in some extra cash, working after retirement is better than not doing anything.
They feel that this helps keep their minds active and helps them meet new people.
However, having a more elderly workforce also limits the options available to everyone because the number of jobs shrinks.
The workforce has already changed over time, but it will change even more drastically in the future, which means employees need to find ways to adapt if they don’t want to get left behind.
(Social Security Administration)
When looking at this from various angles, living longer than expected isn’t a bad thing, but in some cases, it can lead to unexpected problems.
For example, you might not have planned for your retirement years to stretch out so long, which could cause financial issues or make saving up impossible because you need the money for other things.
Without proper planning, living longer than expected can become a significant setback.
14. 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.
(Social Security Administration)
With an increase in life expectancy, the amount of time you’ll spend retired is going to be longer.
As I discussed before, if you don’t save up enough money to make it through this extended time, there’s a good chance your golden years will turn into something out of a nightmare because you won’t have enough money to get by.
The average person retires at 62 and lives until they’re around 85, but this number might increase even more as time goes by – thanks to modern medicine that will allow us to live longer.
Having a retirement income is beneficial because it can make life easier for you by giving you enough income to pay the bills and enjoy your golden years.
The good news is there are more ways today to improve your retirement savings than ever before, thanks to programs designed to help us, but that doesn’t mean the process will be easy.
You must start saving early because if you don’t then, it might not be possible for you to have a comfortable retirement without struggling with money problems once you’re no longer working.
While social security benefits will help, they might not cover all of your living expenses; having more savings will always come in handy.
A financial advisor will be able to review your current situation and help you come up with a plan that will take into account the number of years you have until retirement, your income, and where/how you want to live once you’re retired.
This information will help them find suitable investment solutions for your individual needs.
The key is to trust the person giving advice to recommend the best services for you.
When choosing an advisor, make sure they have experience dealing with various retirees that have led similar lives to yours, allowing such an advisor to give you the right pointers.
This will increase the chances of financial success when retiring later on in life.
Retirement plans are essential because they can give you a sense of comfort, knowing that your income won’t be cut off once you stop working.
The essential retirement statistics above are helpful to know, and the ones about average life expectancy might be some of the most important ones.
This information tells us how many years an average person is expected to live, and as such, one’s retirement plan has to adapt based on this information.
Knowing how long you’re expected to live will help you make better decisions about your lifestyle changes once you retire.
Also, considering your specific healthcare situation is also important.
Retirement planning is complex, but planning for it doesn’t have to be a source of stress.
While the median retirement savings are affected by social security, many people think of this benefit as a valuable resource to have once they retire.
However, the amount you receive might not cover all of your expenses which is why it’s also essential that you save money for yourself or choose better ways (such as investing) to generate income in your golden years.
When it comes to various benefits, Medicare is another factor to consider because it can help cover medical expenses that might arise.
You might also want to look into long-term care insurance that can help you out if needed.
There are many benefits to retiring in life, but always remember that getting personal advice is the best decision you can take.
The main benefit of retiring before what’s considered normal means that you could have a better quality of life in your golden years.
This quality of life can be reflected in various ways, including traveling often, not having a schedule to follow, and being free from work-related stress.
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You might also have more time for other activities you love, such as spending time with your spouse or children, taking care of yourself by doing the things that help you relax, etc.
You may also have better health because you get the necessary time to recover from any health problems affecting you.
In no specific order, the following are some other factors to consider before retiring:
Baby boomers, millennials, older adults, and any other age groups in between can face different issues when retiring.
For example, suppose you’re young enough to experience a decent quality of life after retirement but old enough to have enough money saved for yourself.
In that case, you might be at the perfect age to consider retirement.
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The average American retires around age 62, but that doesn’t mean you should retire at this age if people still depend on your income.
A savings account and a pension plan can help you get by even if you’re older, but it might not be enough to support those that need you.
While your source of income can help you cope with inflation, this also might not be enough to keep up with the cost of living as the years go by.
With interest rates and premiums going up as time passes, inflation should be a consideration in your retiree plan.
If you have a plan in place, it’s good to look at it often and consider other withdrawals that may not be included.
Anything that’s not part of your current pension plan can hurt your savings.
It’s safe to say that the current Coronavirus pandemic struck out of the blue, taking people by surprise.
In fact, according to various retirement survey respondents, the outbreak cost them way more than they had saved up.
This might mean they’ll have to go into their retirement funds to take care of unexpected costs.
Planning for the unexpected can help you avoid such unwanted situations and help you get by, even if bad luck strikes again.
With the proper planning, retirement can be one of the best times in your life.
By keeping in mind the retirement statistics above and using the many services available to help you, you might be able to come up with a plan that will work for your current situation and goals.
As always, remember to consult the right experts to help you develop a retirement plan that fits your specific goals and lifestyle.
What do you think about these retirement statistics? Did any of them really resonate with you? Let me know in the comment section below.
Further reading on AdamEnfroy.com: One thing that can help make your retirement easier is building a business that pays you a passive income.
As such, here are the best passive income ideas to consider today.
You might also be interested in reading about investing in NFTs as a way to build up your retirement assets.
Finally, check out this post on gold IRA scams to ensure that you stay safe when investing.