Retirement Benefits That Are Statistically Relevant
Leah and Roland discuss: How much money, statistically, will you need to live comfortably in retirement? More seniors are declaring bankruptcy. Here is why and key retirement benefits you need to know for planning ahead for retirement?
There are many statistics that speak to why more retirees are declaring bankruptcy. It’s important for people to have the right information when planning for their retirement. After working for years it’s good to know at the end of that long career you will get to live a comfortable life. However, to get to this very attainable goal there needs to be a realistic and well thought out planning process. This can be based on statistically relevant facts on those whom have already retired.
This is where having the correct data in important. While this podcast may focus on data collected over 2020 on other retirees it’s important to note that these number can help you guide your plan in the right direction.
Retirement Benefits: the Number of Retirees and Their Retirement Age
For instance, U.S. Census data show there are 47.8 million U.S. citizens age 65 and older, representing 14.9 percent of the total population. Their average annual income is $38,515, and average net worth is $170,516, but 8.8 percent have incomes that are at the poverty level. According to Gallup’s research, those currently employed project, on average, they’ll retire at age 66. This number is misaligned with reality however, as the current average retirement age is 63, and the average retirement lasts about 18 years. But 63 is closer to 61, which is the retirement age future retirees believe is ideal.
Retirement Savings Statistics
Americans who are age 55-64 have only saved 12 percent of what they need to fund a secure retirement. The number one financial worry of people of working age, at 64 percent, is that they won’t have enough saved. There is a wide range of what the ‘experts’ say is required to fund a secure retirement. At the high end is Suze Orman, who suggests a minimum of $5 million is required to retire early, and says that 70 is the youngest one should consider retiring. Most financial advisers suggest either a certain percent of income during working years, or a range of $1-$1.5MM.
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