Fewer than one in four, or only 17% of Americans over 50, are very confident that they can maintain a comfortable lifestyle in retirement, while over 50% fear outliving their savings, according to a new survey report released by nonprofit Transamerica Center for Retirement Studies® (TCRS), in collaboration with Transamerica Institute®.
The survey, Life in Retirement: Pre-Retiree Expectations and Retiree Realities, compared the retirement preparations and expectations of workers aged 50+ with the experiences of retirees. The survey examined their visions of aging and retirement, when and how retirement happens, life in retirement and their finances.
“Our research finds that retirees are happy, purposeful and have a positive view of aging. However, many are financially vulnerable and risk running out of savings. Their cautionary tale underscores the imperative for strengthening our retirement system,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS.
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Workers fear outliving their savings
According to the survey, the greatest retirement fear among age 50+ workers is outliving their savings and investments, including 45% of aged 50+ workers and 32% of retirees. The greatest fear among retirees is that Social Security benefits will be reduced or cease to exist in the future, including 42% of workers 50+ and 39% of retirees. Many workers over 50 and retirees also fear declining health that requires long-term care and possible long-term care costs.
Planning mistakes to avoid
The survey also revealed common mistakes both groups often make that could be addressed by engaging in more rigorous planning, and included:
- Being overly optimistic about retirement expectations.
- Overlooking life expectancy and how it relates to time in retirement.
- Claiming Social Security benefits too early.
- Taking inadequate steps to safeguard health.
- Failing to plan for long-term care.
- Not seeking assistance from a professional financial advisor, if needed.
“Retirees and pre-retirees have limited financial means, and are susceptible to the turbulent economy and inflation. A harsh reality is that many lack the resources to cover the cost of a major financial shock. If a market downturn, personal health emergency, or natural disaster strikes, many may find themselves in a dire situation,” said Collinson.
Related Content
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
FAQs
In the Corebridge survey, only 27% of respondents said they are confident they won't outlive their retirement savings. In fact, two-thirds of those surveyed said they fear running out of money more than they fear death itself. The findings draw from a 2023 survey of 2,284 adults by Morning Consult.
Do most Americans have enough money saved for retirement? ›
In a recent nationwide survey of working age Americans, 79% agree that the nation faces a retirement savings crisis, up from 67% in 2020. And more than half of Americans (55%) are concerned that they cannot achieve financial security in retirement.
How much does the average American have in their retirement account when they retire? ›
Here's how much the average American has in their retirement savings by age
| Age Range | Average Retirement Savings |
|---|
| 35-44 | $141,520 |
| 45-54 | $313,220 |
| 55-64 | $537,560 |
| 65-74 | $609,230 |
2 more rowsMay 5, 2024
Americans have lofty goals for their retirement, with the typical worker believing they need $1.46 million to retire comfortably — a jump of 53% from their savings target in 2020, according to a new survey from Northwestern Mutual.
How many people retire with no savings? ›
About 1 in 4 have no retirement savings, according to research released Wednesday by the organization that shows how a graying America is worrying more and more about how to make ends meet even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years of record inflation.
How much does the average 70 year old have in savings? ›
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.
How much does the average 65 year old have in retirement savings? ›
Here's how much the average American has in retirement savings by age
| Age Range | Median Retirement Savings |
|---|
| 35-44 | $45,000 |
| 45-54 | $115,000 |
| 55-64 | $185,000 |
| 65-74 | $200,000 |
2 more rowsMay 5, 2024
According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more.
What is the average 401k balance for a 65 year old? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
| 65+ | $232,710 | $70,620 |
2 more rowsMar 13, 2024
Social Security offers a monthly benefit check to many kinds of recipients. As of May 2024, the average check is $1,778.24, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
Northwestern Mutual surveyed 4,588 adults and found: The new “magic” number for a comfortable retirement is $1.46 million.
What is the average monthly retirement income? ›
What is the average retirement income by state?
| State | Average retirement income |
|---|
| California | $34,737 |
| Colorado | $32,379 |
| Connecticut | $32,052 |
| Delaware | $31,283 |
47 more rowsFeb 28, 2024
The average retirement savings for a person about to retire are approximately, $225,000, equal to $450,000 combined for a couple that has saved equally. Following the conservative rule of thumb and withdrawing 4% a year will provide this couple with another $1,500 monthly or $18,000 a year.
What happens if you retire with no money? ›
Many retirees with little to no savings rely solely on Social Security as their main source of income. You can claim Social Security benefits as early as age 62, but your benefit amount will depend on when you start filing for the benefit. You get less than your full benefit if you file before your full retirement age.
What do most retirees live on? ›
Despite retirement savings balances being at highs not seen since 2022, many seniors rely on Social Security as their primary income source. The Social Security Administration reports that 12% of men and 15% of women 65 and older depend on the program for 90% or more of their income.
What is the average nest egg at retirement? ›
The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.
How many Americans have $1,000,000 in retirement savings? ›
According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more. This leaves a significant 90% who fall short of this milestone.
How much does the average American have in non retirement savings? ›
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
What percent of Americans have $300 thousand or more saved for retirement? ›
Only 1 in 4 People Age 55 and Over Has More Than $300K Saved
26% report retirement savings with balances of under $50,000, an amount that is insufficient for people nearing retirement age. Over half (54%) of people age 55 and over have balances far behind typical retirement fund benchmarks for their age group.
How many Americans have less than 10000 saved for retirement? ›
More Than Half of Americans Have Less Than $10,000 Saved
According to the survey, 53% have less than $10,000 saved. Not far behind them is the 15% of Americans who have between $10,001 and $50,000 saved. Going up a little more, just 6% have between $100,001 and $200,000 saved.
