50 Must-Know
Retirement Statistics
and Facts in 2021
When you think of retirement, what comes to mind?
Maybe it’s those ideal days where you can focus on your hobbies or spending time with your grandchildren. Or, maybe it’s in regards to how much you’ve saved. Whatever it may be, your golden years are meant to be the light at the end of the tunnel for your career. But, much planning comes into play in order to be satisfied throughout your retirement.
We researched the latest retirement statistics and facts in 2021 to get a picture of what retirement looks like for Americans.
Retirement Planning
Retirement Age
Cost of Living
Retirement Benefits
401(k)
Life After Retirement
Retirement Planning
Out of all of the non-retired people over the age of 60 in the U.S., 13% have no retirement savings.
The Federal ReserveCopied to clipboard!
60% of non-retirees who hold self-directed retirement savings accounts, such as a 401(k) or IRA, have little to no comfort in managing their investments.
The Federal ReserveMore than 22% of Americans had less than $5,000 saved for retirement and 15% had no retirement savings in 2019 One year prior, 31% had less than $5,000 saved and 21% had no retirement savings at all.
Northwestern MutualCopied to clipboard!
Half of private industry workers (51%) only had access to defined contribution retirement plans.
U.S. Bureau of Labor StatisticsCopied to clipboard!
2 out of 3 workers are confident in having enough money to retire comfortably.
EBRICopied to clipboard!
70% of people say their non-mortgage debt has impacted their ability to save for retirement.
EBRICopied to clipboard!
71% of Americans say that they are afraid that there will be no available Social Security funds when they retire.
Wells FargoCopied to clipboard!
41% of millennials, 35% of Gen Xers and 30% of baby boomers have no access to an employee-sponsored retirement plan.
PEWCopied to clipboard!
54% of people currently have a retirement strategy, but only 12% wrote it down.
Transamerica Center For Retirement StudiesCopied to clipboard!
2 out of 3 of workers with student loan debt say the burden impacts retirement saving.
Wells FargoCopied to clipboard!
15% of workers aged 65+ had been with their employer two years or less in 2018.
U.S. Bureau of Labor StatisticsCopied to clipboard!
Nearly 2 out of 3 people in their 40s have less than $100K saved for retirement.
TD AmeritradeCopied to clipboard!
3 out of 4 (75%) of Americans say the U.S. faces a retirement crisis.
National Institute on Retirement SecurityCopied to clipboard!
Retirement Age
For those 65 and older in the U.S., 99% have health insurance coverage.
U.S. Census BureauCopied to clipboard!
The number of Americans aged 65 and older is projected to be 88.5 million by 2050.
U.S. Census BureauCopied to clipboard!
There are an estimated 52.4 million U.S. citizens 65 years old and older.
U.S. Census BureauCopied to clipboard!
By 2030, the U.S. population is expected to become older with nearly 20% of U.S. residents aged 65 and older.
U.S. Census BureauCopied to clipboard!
There are 8.7 million U.S. military veterans aged 65+ in the U.S.
U.S. Census BureauCopied to clipboard!
The average life expectancy for a man turning age 65 in 2020 is age 84.
Social Security AdministrationCopied to clipboard!
The average retirement age for a full-time permanent employee is 62 years old.
U.S. Office of Personnel ManagementCopied to clipboard!
There is expected to be 43 million people aged 55 and older in the workforce by 2028 — nearly one-quarter of all workers.
U.S. Bureau of Labor StatisticsCopied to clipboard!
The average life expectancy for a woman turning age 65 in 2020 isage 87.
Social Security AdministrationCopied to clipboard!
In 1940, the life expectancy of a 65-year-old was 14 years while in 2020 it’s over 20 years.
Social Security AdministrationCopied to clipboard!
Cost of Living
The average couple will need an estimated $285,000 for medical expenses in retirement (excluding long-term care).
FidelityCopied to clipboard!
For those who are 65+, the total annual expenditures average $43,000.
U.S. Bureau of Labor StatisticsCopied to clipboard!
For those who die at age 95 or older, the median out-of-pocket expense after age 70 is more than $27,000.
EBRICopied to clipboard!
More than one in four (28%) of retirees have mortgage debt.
Transamerica Center For Retirement StudiesCopied to clipboard!
Retirement Benefits
67% of people don’t think that the amount they receive in Social Security will be enough to live on.
SchrodersCopied to clipboard!
67% of nonunion workers have access to retirement benefits through their employer.
U.S. Bureau of Labor StatisticsCopied to clipboard!
94% of civilian union workers have access to retirement benefits through their employer.
U.S. Bureau of Labor StatisticsCopied to clipboard!
In 2018, 68 million people received benefits from programs administered by the Social Security Administration.
Social Security AdministrationCopied to clipboard!
About 45 million retired Americans will receive over $67.7 billion in Social Security benefits in 2020.
Social Security AdministrationCopied to clipboard!
The average Social Security retirement benefit was $1,461 a month, or $17,532 a year in 2019.
Social Security AdministrationCopied to clipboard!
401(k)
More than three out of four of Americans say employers need to contribute more to their retirement.
National Institute on Retirement SecurityCopied to clipboard!
The 401(k) was established through The Revenue Act which was passed by Congress in 1978.
EBRICopied to clipboard!
Although surveyed 401(k) participants believe they need $1.7 million to retire, many are not investing enough to reach that goal.
Charles SchwabCopied to clipboard!
Congress passed The Revenue Act in 1978, which states that employees are not taxed on a portion of income they elect to receive as deferred compensation.
EBRICopied to clipboard!
Life After Retirement
The top three states that retirees are moving to are Florida, Arizona and South Carolina.
SmartAssetCopied to clipboard!
The rate of cognitive decline with age is 70% less in people with frequent social contact than those with low social activity.
PMCCopied to clipboard!
77% of people would like to remain in their community for as long as possible after they retire.
AARPCopied to clipboard!
63% of retirees are insured on a Medicare plan.
Transamerica Center For Retirement StudiesCopied to clipboard!
One-third of retirees (34%) use a professional financial advisor.
Transamerica Center For Retirement StudiesCopied to clipboard!
The Centers for Disease Control and Prevention (CDC) recommends that people aged 65 and older should get at least 150 minutes of moderate-intensity aerobic activity per week.
CDCCopied to clipboard!
Only 5% of retirees frequently discuss retirement savings, investments and their financial situation with their family and friends.
Transamerica Center For Retirement StudiesCopied to clipboard!
Two out of three retirees say their most recent employers didn’t help them transition into retirement.
Transamerica Center For Retirement StudiesCopied to clipboard!
76% of baby boomers plan to keep working and earning in retirement.
Merrill LynchCopied to clipboard!
Retirement statistics can help paint a picture of overarching retirement trends in the U.S., but every story is unique. Everyone prepares for retirement differently with their own saving strategy (or lack thereof), plans for post-retirement life and living arrangements.
If you’re in the planning stages, learn more about factors that can affect when you retire. Or if you’re already in retirement, consider these post-retirement job opportunities that can help you earn extra income in your golden years.
