1 in 3 Americans has $0 saved for retirement....
How do your savings compare? In 2022, almost half of American households had no savings in retirement accounts, according to the Survey of Consumer Finances (SCF).
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.
Regardless of how they define it, 56% of Americans agree they're not on track to retire comfortably, according to the latest CNBC Your Money survey conducted by SurveyMonkey. It can be stressful to think you won't be financially ready to retire when you're emotionally or physically ready.
If you retire with no money, you'll have to consider ways to create income to pay your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck.
If you're an average earner, Social Security will only replace about 40% of your former income. So if you retire without any savings, you might end up effectively taking a 60% pay cut. At the start of 2023, the average Social Security benefit was $1,827 a month. That's an annual income of a little less than $22,000.
Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.
14% of Americans Have $100,000 Saved for Retirement
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
If you have more than $1 million saved in retirement accounts, you are in the top 3% of retirees. According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.
As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient.
Just over half, 53%, of all Americans think that they will enter retirement debt-free, but only 23% do so. Eight in 10 middle-income Baby Boomers not yet retired currently carry some debt, and among those who are retired, 77% still carry debt.
Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.
57% of U.S. adults are uncomfortable with the amount of emergency savings they currently have, as of May 2023 polling. Fewer have no emergency savings. 22% of U.S. adults have no emergency savings at all, the second lowest percentage in 13 years of polling, as of May 2023 polling.
21 percent of Americans said not saving early enough for retirement was their biggest financial regret, according to a Bankrate survey.
The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances. Taken on their own, those numbers aren't incredibly helpful. There are a variety of decent retirement savings benchmarks out there, but how much money other people have isn't one of them.
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
Recent data from Northwestern Mutual shows that the average 30-something has $67,400 saved for retirement. So if you're sitting on a $100,000 savings balance at age 30, it means you're ahead of the game.
56 million credit cardholders have been in debt for at least a year, survey finds. Although Americans helped stave off a recession in 2023 by spending enough to propel economic growth, it has come at a cost: Nearly half of consumers say they are carrying credit card debt, according to a new survey from Bankrate.
Those living paycheck to paycheck devote their salaries predominantly to expenses. Living paycheck to paycheck may also mean living with limited or no savings and refer to people who are at greater financial risk if they were suddenly unemployed.
The German Institute for Economic Research in Berlin reveals another alarming statistic: almost half of the population, or 40%, is living paycheck to paycheck. They have little to no financial cushion to fall back on in case of emergencies, let alone for long-term aspirations or retirement.
“What it mostly depends upon is income,” said John Graves, founder and managing partner of G&H Financial Group. “In retirement, income is king. There is a common belief that huge amounts of savings are necessary, but the reality is that guaranteed income is far more important than an IRA balance.”
But even if you never worked and therefore don't have an earnings record, you're not necessarily out of luck. If you're married (or were married) to someone who's entitled to Social Security, you can collect spousal benefits equal to 50% of your husband or wife's benefits at full retirement age.
If you hope to retire without Social Security, you'll probably need to save $1 million or more on your own. Making monthly retirement contributions is key to achieving that goal. But most people don't need to plan for a retirement without Social Security because the program will still be around in some form.