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?
Related Posts:
1) Six Easy Steps to Figuring Out Your Retirement
2) How to Retire on 500K with the Greatest Potential
Those are some crazy statistics! I can’t believe 50 year olds have such a small amount of money.
It makes me glad I am so heavily involved in my own personal finances 🙂
I know! Apparently I already have more saved up than most people who “actually retire”. I was proud for about a second, then I got really sad.
Good Lawwwwd! Is that $43,797 savings right??? I can’t believe that!!! These are some scary stats. It is unreal to me that people wouldn’t think ahead more.
It looks like years and years of living paycheck to paycheck really can catch up with you!
I always shake my head when I read stats like this. It’s sad and many people will be in for a shocking surprise when retirement comes and they don’t have enough or see that Social Security is either not there or not enough for them. Have worked in the finance industry, I dealt with people in these situations way too much each day.
I shake my head also John. When ever I see these kinds of stats, I almost can’t believe them. But after you hear them enough from enough sources, it becomes alarmingly obvious that it is probably true and our society is doomed!
The numbers are absolutely terrifying, but at least the good thing is they haven’t changed in a few years. 🙂 Well…I guess that’s a good thing and a bad thing: certainly doesn’t sound like we’re improving.
Hey, sometimes not getting worse is a win all by itself. But unfortunately our society has got a LONG ways to go!
Uhhh yeah, those are definitely scary!
Freighting!! But only because its a “true” story!
To me the scariest is that 29% of people starting work at 25 don’t even live to reach 65. Holy cow! My retirement plan is based on living to 90! I’m on track so far, but I have a looooong way to go.
That one is pretty alarming! We’re in agreement – my plans also assume I’ll live to be 100! If I die early, my heirs won’t be disappointed! 🙂
This is the most frightening thing I’ve seen today!
I guess we’re ahead. At 27 (as a married couple) we have nearly $44k in retirement accounts. I definitely want to be in that 5% adequately prepared for retirement.
It sounds like you guys are well on the right track. Keep up the good work and you could be in the 1%!
As scary as they are I am not surprised. I am determined to be part of the 5% that are prepared and hope to make the 1% that are wealthy!
Unfortunately, I wasn’t really too shocked to see this either. I’ve seen other survey’s that told the same grim facts. I’m with you – I’m gunning for the 1%. I want to be happy, free, and financially independent!
Scary indeed, I wonder what went wrong with maney of these people? did divorce play a role? the death of a spouse? a career gone bad? so many stories out there…
I would be willing to bet that lack of planning was probably the key factor. But certainly divorce, job loss, and a lot of other factors probably made some casualties out of good working, honest people with a plan. Sometimes plans get derailed, but you have to find your way to get back on the horse.
You warned me the numbers would be crazy. Wow. This more than anything makes me worried about the future of the US economy, particularly when you look at the debt clock. Wow. Makes me want to redouble my efforts for an early retirement. At least if I fail I’ll be really well set up for a normal one at 65. Bloody hell!
I’m glad you remembered to visit this post! You’re going to love my one on Monday – it’s MY plan for my version of early retirement.
I agree with you. If this is how the US economy is going to go and people are going to have such little money to their name, eventually no one will be able to afford anything and we won’t stay a first world nation for much longer ….
Funny you mentioned that in your last response, MMD (about being a first world country.) No way in hell can we continue that honor with these dismal statistics, and I am capturing glimpses of a banana republic evolving all around me. This country I do believe will continue a slow degradation over the next few decades if people do not get their financial households in order. • Average savings of a 50 year old: $43,797?? That is so abundantly scary, it is difficult to believe, except I am witnessing firsthand the poverty sprouting up all around me.
Unfortunately, I share your vision of the break down of our society. If these numbers don’t improve, being “rich” in America will be a truly relative term!
One thing that scared me was when people started poking fun at me when I told them I was starting to save for retirement. We’re nowhere near where we need to be, but a great deal of people I talk to are completely oblivious of the fact that they’re going to be 65 some day.
You are very, very wise to start early because TIME is the greatest asset when it comes to asset. You can know nothing about investing and still come out ahead of your peers given enough time to let the compound interest effects of your investments overcome their efforts. People have said the same thing to me, but I know what my priorities are, and what I plan to do.
OK – those are really scary #’s. But I’d be interested in hearing how much you guys think you’ll need to retire on and how exactly you intend to reach that #, assuming you’re raising kids and paying for their college. Thanks.
Your wish is granted! On Monday 11/05, I’ll have a post where I describe in full how I plan to save for retirement (all while raising my two kids and saving for their college).