[4/30/17] For many Americans, retirement is a mixed bag. On one hand, countless seniors enjoy the flexibility and freedom retirement offers. On the other hand, finances, or a glaring lack thereof, are a major concern for older Americans, especially since so many go into retirement ill-equipped to live off a fixed income. Here’s some key data that might open your eyes to the reality of our country’s retirement crisis.
1. One in four 65-year-olds today will live past age 90, while one in 10 will live past age 95
Life expectancies today are increasing, and while that’s a good thing in theory, it poses a challenge from a savings perspective. Think about it: If you’ve been saving for a 20-year retirement and wind up living 10 years longer, you may have trouble paying the bills at a time in your life when you’re at your most mentally and physically vulnerable.
2. One out of every three Americans has no retirement savings whatsoever
That’s the latest out of a recent GoBankingRates survey, which also found that among those who have saved, 56% are sitting on less than $10,000. Given that most retirees can’t survive on Social Security alone, that paints a pretty bleak picture.
3. Over 40% of single seniors 65 and over get at least 90% of their income from Social Security
And frankly, that’s asking way too much. Social Security is only designed to replace about 40% of the typical worker’s pre-retirement income. Most people, however, need at least 70% of their previous earnings to pay the bills in retirement, which explains why more than 25 million Americans aged 60 and older live at or below the poverty level .
4. Only 51% of Americans are confident they’re saving enough
In its latest retirement survey, Transamerica found that only about half of workers feel they’re building a nest egg that will sustain them in retirement. Given the number of people who aren’t saving anything, this certainly isn’t shocking.
5. More than one-third of Americans expect to work in retirement
And it’s not just because they want the mental stimulation. A large number of Americans feel they’ll have no choice but to remain employed in some capacity during retirement to supplement their limited income. That said, a recent TD Ameritrade study found that one in 10 retirees winds up going back to work to combat boredom . It pays to keep your skills up-to-date later on in your career so that you have the option to continue working during your golden years.