America is facing a retirement crisis, as many people have inadequate savings and are having to work well into their senior years to pay for living expenses. The situation may also worsen over the next decade, as social security benefits are expected to be cut by as much as 20% at the same time as taxes and the retirement age to receive benefits goes up. To give more context about the current and future state of retirement in the U.S., here are some of the most important statistics to know in 2023.
Retirement Age Statistics
The average age of retirement is 64.7 for men and 62.1 for women (Zippia)
The average age of retirement has increased over time, up from age 57 in 1991 (CNBC)
The expected age of retirement has increased from age 60 in 1995 to 66 in 2018 (Gallup)
The current U.S. life expectancy is 79.1 years, up +16.15% from 68.1 in 1950. This means Americans are living longer, and must save more for retirement. (Macrotrends)
1/5th of Americans said they’re delaying retirement due to inflation (GoBankingRates)
51% of Americans retire between the ages of 61 and 65, while 69% are retired by age 66, and 89% of Americans retire by age 75 (Financial Samurai)
Almost half (46%) of Americans between the ages of 60-75 say they plan to work part time in retirement (Forbes)
1 in 12 Americans believe they’ll never retire (RITA)
Retirement Savings Statistics
Average retirement savings by age (Nerdwallet)
Under 35: $30,170
35-44: $131,950
45-54: $254,720
55-64: $408,420
65-74: $426,070
The average age Americans start saving for retirement at is 31 years old (The Motley Fool)
In 2022, Americans reported saving an average of $5,011 for retirement (CNBC)
55% of Americans say they’re behind on saving for retirement (Bankrate)
32% of working-age Americans have no retirement savings (Benefits PRO)
38% of Americans are worried about outliving their savings and investments (Yahoo)
25% of Americans think they need over $1 million to retire well. 38% believe that less than $250,000 is an adequate amount (Zippia)
41% of Americans stopped putting money into a retirement fund in 2022 due to cost-of-living increases, while 32% withdrew funds from their retirement savings to keep up with inflation (SHRM)
Retirement Planning Statistics
Nearly 7 in 10 (67%) Americans between ages 50 and 74 don’t have a formal retirement plan, while 4 in 5 lack retirement planning basics on how to be financially secure (Magnify Money)
67% of retirees said they wish they better understood retirement savings when they were working, with 57% saying they waited too long to start (Yahoo)
72% of people have reevaluated their retirement plans since the start of the COVID-19 pandemic (U.S. News)
73% of people believe the generation after theirs will have a more difficult time retiring than they did (U.S. News)
67% of people said their employer offered a 401(k) or similar employer sponsored plan, and 77% of those individuals chose to participate (FA Mag)
60% of retirees say their former employers did not help them adequately prepare for retirement (Clever)
Post-Retirement Statistics
44% of retirees struggle to afford basic living expenses (Clever)
71% of retirees carry debt through their retirement (Yahoo)
12% of older Americans rely exclusively on Social Security for their retirement income (CNBC)
48% of retirees believe they’ll outlive their savings (Clever)
37% of retirees have no retirement savings left, an increase from 30% in 2022 (Clever)
Use Your Life Insurance to Pay for Retirement
Whether you’re planning for retirement or already retired, make sure to get the full value from your life insurance policy to help with retirement expenses. Few Americans realize that their life insurance policy is one of the most valuable assets they have, sometimes equatable to the value of their home. Don’t lapse your policy for nothing or surrender it for minimal value, sell it through a life settlement to get a cash payout worth up to 60% of the death benefit value. You can use the proceeds to pay for retirement living expenses, get rid of debt, or create a rainy day fund for emergencies. Find out the value of your policy today!
