ROANOKE, Va. (WFXR) — The cost of living has been the topic of conversation across the country. As families continue working to make ends meet, a report from USA Facts reflects that almost half of American households have no retirement savings.
According to the Survey of Consumer Finances, in 2022 almost half of American household retirement savings accounts were empty. The accounts included individual retirement accounts; Keogh accounts; certain employer-sponsored accounts, such as 401(k), 403(b), thrift savings accounts; and pensions.
Even though personal saving has grown more important as employers have shifted away from defined benefit plans, the pressure has been on workers to have a retirement plan. USA Facts says in 1989, half of working households ages 50 to 60 had a defined plan.
However, in 2022, only a quarter did. In that same year, about 46% of households reported any savings in retirement accounts, about 26% saved more than $100,000 and 9% had more than $500,000.
These percentages were just a little higher for older people, and people aged 50 to 54 were most likely to have a retirement account. In this age group, 63% had any savings, and 35% had saved more than $100,000.
According to USA Facts, most American households have at least $1,000 in checking or savings accounts. However, only 12% have more than $100,000 in both accounts.
The report indicates about 45% of the households getting closer to retirement age have that amount of financial assets, including checking and savings accounts, retirement accounts, stocks, bonds, and certificates of deposit.
Households that have higher percentages have a net worth of at least $100,000. But even with these assets, Americans appear to rely heavily on Social Security benefits after they stop working. The report states that workers younger than 63 are eligible for full Social Security retirement benefits at 67.
The median household between the ages of 30 and 34 had $4,700 in dedicated retirement accounts, $7,000 in checking and saving accounts, $20,100 in financial assets, and a net worth of $89,800.
Lastly, at ages 55 to 59, the median households had:
- $24,500 in retirement accounts
- $7,900 in checking and savings accounts
- $76,000 in financial assets, and a net worth of $30,700
FAQs
As families continue working to make ends meet, a report from USA Facts reflects that almost half of American households have no retirement savings. According to the Survey of Consumer Finances, in 2022 almost half of American household retirement savings accounts were empty.
What percentage of the US population has no retirement savings? ›
55% of non-retirees have a 401(k) or 403(b), while 25% have no retirement savings. Americans with a high school degree have median retirement savings of $44,000, while those with a college degree have an average account value of $141,700.
Do half Americans have no retirement savings? ›
In 2022, almost half of American households had no savings in retirement accounts, according to the Survey of Consumer Finances (SCF). These accounts include individual retirement accounts; Keogh accounts; certain employer-sponsored accounts, such as 401(k), 403(b), thrift savings accounts; and pensions.
What are the facts about retirement in the US? ›
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)
What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.
What percent of people over 55 have no money saved for retirement? ›
According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.
How many people over 60 have no retirement savings? ›
WASHINGTON (TND) — About 20% of Americans who are 50 or older and not yet retired have no retirement savings and are concerned about prices rising faster than their income as inflation continues to present a challenge to households and entitlement programs are facing budget shortfalls.
Why are Americans not saving for retirement? ›
Saving is hard. Few jobs offer traditional pensions anymore. A 401(k) puts the burden of financial management largely on the employee. And Social Security is a labyrinth of complex regulations and difficult calculations, administered by a seemingly indifferent bureaucracy.
Why aren t Americans saving for retirement? ›
Common reasons Americans delay saving for retirement
Those closer to retirement age are among those feeling this sense of urgency the most.” It's often challenging to set aside money for a long-term goal such as retirement, when you may have plenty of good uses for the money in the here and now.
Why don't Americans save for retirement? ›
By the standards of most financial experts, Americans are woefully behind on saving for retirement. The reason why is rooted in changes to the country's retirement system that resulted in a flawed design for how people set aside money.
The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.
What percent of white Americans have enough money to retire? ›
In 2019, about 63 percent of white households had a retirement account balance compared to about 41 percent of households of all other races. Among households that had retirement savings in 2019, white households had double the median balance of all other races ($164,000 to $80,300, respectively).
How much does the average 65 year old have in retirement savings? ›
Federal Reserve SCF Data
| Age Range | Average Retirement Savings |
|---|
| Ages 35-44 | $131,950 |
| Ages 45-54 | $254,720 |
| Ages 55-64 | $408,420 |
| Ages 65-74 | $426,070 |
3 more rowsThe national average for retirement savings varies depending on age, but according to the Economic Policy Institute, the median retirement savings for all working age households in the US is around $95,776.
At what age can you retire with $1 million dollars? ›
Retiring at 65 with $1 million is entirely possible. Suppose you need your retirement savings to last for 15 years. Using this figure, your $1 million would provide you with just over $66,000 annually. Should you need it to last a bit longer, say 25 years, you will have $40,000 a year to play with.
How many people in the US have no retirement? ›
Twenty percent of Americans aged 50 or more years have no retirement savings, and more than 50% worry they will not have enough money to support themselves in retirement. That's according to a recent survey from AARP.
How many Americans do not have a retirement? ›
New survey results released by the AARP this week paint a less optimistic outlook for Americans ages 50 and up, with 20% indicating they have no retirement savings. Moreover, 61% say they worry they will not have enough money in retirement.
How many retirees have no money? ›
Certain retirees face a lack of savings more than others. Retired women are 33% more likely than men to struggle financially during retirement, the survey said. Approximately 28% of women have nothing saved for retirement, compared to 20% of men.
