Happy Halloween everyone! Since most people will be out celebrating Trick or Treating tonight, I thought we’d do a very brief post of something truly alarming! No, it’s not about ghosts, monsters, or anything else from the paranormal. This is something much more frightening – These are scary retirement statistics!
The reason these should terrify you is because, unlike a superstitious ghost story, these statistics tell a very real story. And if they are any indication of things to come, reality is going to be pretty grim for a lot of people. Read these numbers and tell me they don’t paint a pretty chilling picture of the future to come!
The following figures are from Statistic Brain and are overwhelmingly alarming:
Scary Retirement Statistics:
• Average retirement: Age 62
• Average length of retirement: 18 years
• Average savings of a 50 year old: $43,797
• Total cost for a couple over 65 to pay for medical treatment over a 20 year span: $215,000
• Percentage of people ages 30-54 who believe they will not have enough money put away for retirement: 80%
• Percentage of Americans over 65 who rely completely on Social Security: 35%
• Percentage of Americans who don’t save anything for retirement: 36%
• Total Number of Americans who turn 65 per day: 6,000
• Percentage of population that is 65 years of age or older: 13%
Out of 100 people who starts working at the age of 25, by the age 65:
• Will be considered wealthy: 1%
• Have adequate capital stowed away for retirement: 4%
• Will still be working: 3%
• Are dependent on Social Security, friends, relatives or charity: 63%
• Are dead: 29%
Don’t Be a Statistic:
Want to have more than $44,000 saved for retirement? Don’t want to be completely dependent on Social Security (which many readers believe won’t even be around in the upcoming decades)? Then do something about it!
Decide on how much monthly income you think you’ll need in retirement, figure out how what tools you have to get there, and then decide on what actions you need to take now to make that happen. One resource that taught me a lot about how to get on track was a book called Your Money Ratios by Charles Farrell. As always, you can use my blog for advice on a lot of topics. In particular if you’d like to see an example of a retirement savings plan, feel free to read my post My Money Design – October 2012 Update which describes my strategy for financial freedom.
Readers – What do you think about these scary retirement statistics? Aren’t they alarming? Are you beating these numbers or falling behind?
1) Six Easy Steps to Figuring Out Your Retirement