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 2024.
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 63 in 2002 to 66 in 2022 (The Motley Fool)
- 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)
- 40% of older Americans said they’re delaying retirement due to inflation (BenefitsPRO)
- Over 12,000 Americans will turn 65 every day in 2024 (Yahoo)
- 22% of working Americans are likely to retire in 2024 (Allianz)
- According to the 2023 Retirement Confidence Survey, here’s the breakdown of when surveyed retirees stopped working
- Under 55 (13%)
- 55-59 (20%)
- 60-61 (9%)
- 62-64 (9%)
- 65 (13%)
- 66-69 (13%)
- 70 or older/never retire (6%)
- 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 (Western & Southern Financial Group)
25-35: $37,211
35-44: $97,020
45-54: $179,200
55-64: $256,244
65+: $279,997
- 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)
- 56% of Americans say they’re behind on saving for retirement (Bankrate)
- 58 million, or 32% of working-age Americans have no retirement savings (Benefits PRO)
- 43% of Americans are worried about outliving their savings and investments (The Motly Fool)
- On average, Americans believe they’ll need $1.8 million to retire comfortably. However, only 37% of workers believe they’ll be able to achieve this goal (USA Today)
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)
- 88% 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, and 53% said their income wasn’t high enough to afford retirement (Benefits PRO)
- Americans say the top actions they can take to reduce risk to their retirement include the following according to Allianz
- Downsize current spending (34%)
- Put money in a financial product that protects retirement savings against market drops (23%)
- Develop a plan to address the rising cost of living in retirement (21%)
Post-Retirement Statistics
- 12% of currently retired Americans expect to come out of retirement in 2024 (WTOP News)
- Less than 15% of single adults aged 75 or older can afford the combined costs of housing and long-term care services (National Low Income Housing Coalition)
- 44% of retirees struggle to afford basic living expenses (Clever)
- 71% of retirees carry debt through their retirement (Yahoo)
- 41% of Baby Boomers say social security will be their primary source of income in retirement (The Motley Fool)
- 48% of retirees believe they’ll outlive their savings (Clever)
- 37% of retirees have no retirement savings left (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!
