26+ Essential Retirement Statistics [2023]: Facts About American Retirement Savings + Age

Research Summary. Most of us look forward to the day we can kick back and relax in our old age. However, it can sometimes seem like the retirement age is being pushed back further and further.

While this is true to some extent, a majority of Americans still have retirement plans. However, the nature of these plans is often subject to change, and can easily be impacted by the economy. Overall, after extensive research, our data analysis team concluded:

• The average retirement age is 64.7 for men and 62.1 for women.

• The average retirement account savings in the United States is $73,100 as of 2021.

• 69% of private industry workers have access to retirement plans through their employers as of March 2022.

• 25% of Americans have no retirement savings.

• 25% of Americans think they need over $1 million to retire well. 38% believe that less than $250,000 is an adequate amount.

For further analysis, we broke down the data in the following ways:

Gender | Race/Ethnicity | Region | Trends | Plan Types

Average vs. Median Retirement Savings by Age

Note: This table only accounts for money in an actual retirement account (401(k), IRA, etc.). While the average retirement savings in the US looks pretty healthy, the median shows us that half the country has under $15,000 in retirement savings at their peak.

General Retirement Statistics

Despite Americans believing they need millions of dollars to retire, the median retirement savings for the country is $73,000. This can indicate several reasons, such as maybe Americans aren’t saving enough, or maybe their jobs don’t offer adequate retirement plans.

• The median retirement savings for Americans with retirement accounts is $73,100

  Between 2020 and 2021, the median retirement savings in the U.S. rose by roughly 10%, from $65,900 to $73,100. However, this number isn’t equal across all ages. For example, retirement account savings in the United States is $51,000 for those between 35-44 and $90,000 for those between 45-54.

• 12% of retirees continue to work in retirement.

  And that number is split between full-time and part-time. Of the 12%, 5% continue to work full-time, and 7% continue to work part-time.

• 25% of Americans have no retirement savings.

  And this percentage is even higher for those between 18-29, as 38% of these individuals have no retirement savings. This also seems to correlate with the fact that one out of three middle-class adults can’t afford to cover a $400 emergency.

• If you retire at 65, you have a 76% chance of having ten years of retirement and a 38% chance of having 20 years of retirement.

  Even though the median death age in the U.S. is 78.5 years, this isn’t an accurate number for those who’ve already made it to 65 or 70. In fact, 76% of those who retire at 65 are expected to have at least ten years of retirement, and that number is still 65% for those who retire at 70.

  However, spending 30+ years in retirement is highly unlikely, at a rate of 5% or less depending on age.

• Since the start of the COVID-19 Pandemic, only 57% of seniors 60 or older have at least $100,000 in retirement savings.

  And 43% don’t, which is a major jump from the 26% who didn’t before the pandemic. This means that a growing number of seniors have less than $100,000 set aside for retirement.

Retirement Statistics by Gender

When it comes to retirement, there are some key differences between men and women. Believe it or not, women actually retire earlier than men, despite living longer on average. Here are some other insights our research uncovered:

• On average, women retire two years earlier than men.

  The average retirement age for women is 62.1, while the average retirement age for men is 64.7.

• Women have 40% less in retirement savings than men.

  Even though women tend to retire earlier, many actually have significantly less retirement savings than their male counterparts. On average, men have $98,000 saved, and by contrast, women only have $62,000.

  Studies have shown that while women are generally better at protecting the assets they have, they trail men in preparing for retirement.

• 6% more men participate in 401(k) plans than women.

  Overall, 61% of men participate in 401k plans, while that number is 55% for women. This contributes to the gap between male and female retirement savings.

Retirement Statistics by Race and Ethnicity

Similar to gender, race and ethnicity can also have a significant effect on retirement. Unfortunately, the fact is that non-white individuals are at an extreme disadvantage in the United States. According to our research:

• Around 30% more Black and Latino households do not own assets in a retirement account.

  62% of black and 69% of Latino households do not own assets in a retirement account. By contrast, that number is only 37% for white households.



• Asian, Black, and Latino workers are less likely to have access to private-sector retirement plans.

  When it comes to retirement plan access, Asian workers are 13%, Black workers are 15%, and Latino workers are 42% less likely to have access to a retirement plan than their White counterparts.

• Among near-retirees, households of color will have 1/4 the amount of retirement money saved compared to White households.

  While the average amount of money saved for White near-retirees is around $120,000, that number is only $30,000 for households of color.

• Latino workers are among the most marginalized when it comes to preparing for retirement.

  As shown by these statistics, Latino workers face the most daunting disparities between their retirement savings and that of their white counterparts. 32% more Latinos don’t own assets in a retirement account and are 42% less likely to have access to a retirement plan.

Retirement Statistics by Region

The United States is a big country, so it’s no surprise that retirement statistics also vary by region. While Connecticut, New Hampshire, and New Jersey might have average retirement savings of over $400,000, this isn’t the case for every state. Here’s what we found:

• Hawaii, South Dakota, and Massachusetts have the oldest median retirement age of 66.

  Compared to the national average of 62-64 years old, these three states add at least two extra years to that figure. Interestingly though, these states also have a wide range of estimated retirement savings needed. While experts predict that $1,692,722 is needed to retire comfortably in Hawaii, only $786,497 is needed in South Dakota.

• Connecticut has the highest average retirement savings of $523,568.

  However, this state also has a high annual cost of a comfortable retirement, at $70,817. While this isn’t the highest, it far exceeds the $45,000-$50,000 per year needed to retire comfortably in the cheapest states.

• Utah has the lowest average retirement savings of $300,568.

  While this is much higher than the average amount of retirement money saved throughout the country, it’s the lowest for actual retirees state by state. Perhaps this can particularly be attributed to Utah’s lower-than-average annual cost of a comfortable retirement, which is only $54,363.

• 95% of retirees stay in the state they currently live in.

  Despite many who talk about retiring in a different location, the senior migration rate has only been 5% post-recession.

• Many of the 5% who migrate go to Florida.

  Many of the retirees who do this are individuals living in colder states with a higher cost of living (like New York or Massachusetts) and move south to states with warmer climates and a lower cost of living. For example, the annual cost of a comfortable retirement in New York is $77,911, while the cost in Florida is only $56,382.

Retirement Trends and Predictions

When analyzing the trends and predictions of retirement, it’s important to recognize the past, present, and possible future. While future trends can be hard to estimate, this is what the experts say:

• New Mexico, Florida, Arizona, and South Carolina are the most popular retirement destinations.

  These states have the highest number of retirees, with retiring being the reason 43% of people moved to New Mexico, 39% to Florida, and 37% to Arizona and South Carolina.

• Self-funded savings, such as 401k retirement accounts, make up 79% of all retirement savings in the U.S.

  And this is across all generations, though there are some differences between the generations. For example, self-funded savings account for 87% of Baby-Boomer savings, while that number is only 58% for millennials.

• 71% of Americans worry that Social Security will run out in their lifetime.

  However, experts refute this, claiming that the chance of this happening is as close to zero as you can get.

• Today, 55% of people plan to work in retirement.

  And of that 55%, there are 35% who don’t have any retirement savings.

• Americans believe they need at least $1.9 million to retire comfortably.

  This estimate is up 12% from 2019.

Types of Retirement Plans Statistics

Of course, not all retirement plans are equal. 69% of private industry workers have access to retirement plans through their employment, which means a majority of workers rely on their jobs to create a retirement plan. Here are more facts:

• 69% of private industry workers have access to retirement plans through their employers.

  And this number drastically favors full-time employees over part-time ones. For example, in 2020, 77% of those with full-time jobs had access to a retirement plan, while only 39% of part-time workers did.

• 40.2% of those over the age of 60 rely on only Social Security for their income.

  Even more interesting is that only 7.6% don’t rely on Social security in some capacity. In these instances, their income mainly comes from defined benefits or defined contributions.

• The average monthly Social Security retirement benefit is $1,507.53.

  And this isn’t much, amounting to only around $18,000 per year. Remember that 40.2% of those over the age of 60 rely on only this income to get by.

• 91% of Union workers have access to a retirement plan.

  Which is 24% more than the national average and 26% more than those who aren’t members of a union.

Retirement FAQ

1. How much do I need to retire?

   This question depends on many factors, from the state you live in to the amount of money you’ll be receiving from Social Security. However, if you’re comfortable with your current lifestyle, you should estimate your annual retirement income to be about 80% of your final pre-retirement salary.

   For instance, if you currently make $60,000 per year, then you will need at least $48,000 per year annually in retirement income to live comfortably.

2. When should I claim Social Security?

   While you can claim your Social Security benefits as early as 62, you will receive higher benefits if you wait until your “full retirement age” to claim. Generally speaking, the increase in the amount of benefits you’ll receive upon claiming will max out at around 70 years old.

   For example, if you claim Social Security at 62, you’ll likely face a 30% reduction in monthly benefits. In turn, each year you delay your claims up to age 70, you’ll get an 8% increase in your benefits.

3. How can I boost my retirement savings?

   The best way you can boost your retirement savings is by starting to save now. For example, someone who started saving $100 per month at 35 will only have around $150,000 by retirement age, while someone who started saving $75 a month at 25 will have over $250,000.

   Other ways you can improve your savings are contributing to your 401k plan, reducing spending, and setting goals.

4. How much does the average American have in savings when they retire?

   The average American has $221,451.67 in savings when they retire. That’s based on the average retirement savings for Americans ages 60-64 and the fact that this is the average retirement age in the US.

   However, this number might easily be considered skewed, as the few American households who have over $1 million in retirement savings impact the average. More realistically, the medical retirement savings in the U.S. is only $73,100, and up to 25% of Americans have no retirement savings at all.

5. What percentage of Americans have $1 million or more in retirement savings?

   Between 10-16% of American households have $1 million or more in retirement savings. If you define savings more broadly to include a household’s net worth, the number rises closer to 20%, whereas if you limit it to individuals with $1 million+ in retirement accounts, the rate drops to 10%.

6. Are most retirees millionaires?

   No, most retirees aren’t millionaires. The average American has just over $220,000 saved when they retire, so they are far from millionaire status. In fact, just 10-16% of Americans have at least $1 million saved for retirement.

Conclusion

The current state of retirement in the United States is rather precarious, with Americans estimating that they’ll need an average $1.9 million in retirement savings to live comfortably and 40.2% of actual retirees living on less than $20,000 per year.

As it stands, the average retiree only spends $48,106 per year. And while this number is fairly low, it’s over half of the $73,100 retirement savings many Americans have to live out the rest of their years. Clearly, there is a disconnect between what we think we need and the actual statistics.

Likewise, it’s also clear that there are huge disparities between retirement for wealthy white individuals and poor people of color. Households of color have an average of $90,000 less in retirement savings than their white counterparts.

However, not all of this is doom and gloom. Unions, 401k plans, Social Security, and more can aid in the ability to save more money for retirement. If you want to learn more, talk to your employer or explore the job market for new and exciting opportunities.

References

1. CRR. “How to Think About Recent Trends in the Average Retirement Age?” Accessed on February 1, 2023.

2. Smartasset. “Average Retirement Savings: Are You Normal?” Accessed on June 27, 2022.

3. BLS. “How Do Retirement Plans for Private Industry and State and Local Government Workers Compare?.” Accessed on February 1, 2023.

4. BLS. “67 Percent of Private Industry Workers Had Access to Retirement Plans in 2020.” Accessed on June 27, 2022.

5. Fox Business. “Here’s how much money Americans think they need to retire comfortably.” Accessed on June 27, 2022.

6. Board of Governors of the Federal Reserve System. “25% of US adults have no retirement savings.” Accessed on February 1, 2023.

7. Pew Research Center. “Working After Retirement: The Gap Between Expectations and Reality.” Accessed on June 27, 2022.

8. Forbes. “How Long Will Your Retirement Really Last?” Accessed on June 27, 2022.

9. Financial Advisor. “Women Have 40% Less In Retirement Savings Than Men, BofA Finds.” Accessed on June 27, 2022.

10. National Institute on Retirement Security. “Race and Retirement Insecurity in the United States.” Accessed on June 27, 2022.

11. GOBankingRates. “The Average Retirement Age in Every State.” Accessed on June 27, 2022.

12. CNBC. “Most retirees stay put — but those who move head here.” Accessed on June 27, 2022.

13. Investopedia. “The Most Popular States to Retire to in the U.S.” Accessed on June 27, 20221.

14. TransAmerica Center. “What Is “Retirement”? Three Generations Prepare for Older Age.” Accessed on June 27, 2022.

15. CNBC. “71% of Americans are worried Social Security will run out of money in their lifetimes. Why experts say that won’t happen.” Accessed on June 27, 2022.

16. CNBC. “Here’s where most Americans are really getting their retirement income.” Accessed on June 27, 2022.

17. Bankrate. “What is the Average Social Security Check?” Accessed on June 27, 2022.

18. Social Security Administration. “Fast Facts Figures About Social Security, 2020.” Accessed on June 27, 2022.

Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.