20% of adults ages 50+ have no retirement savings, 61% worry they won't have enough at retirement, as per new AARP survey. Plus six tips to start saving now.
Fully half of the nation's working-age households will not have enough money to maintain their standard of living once in retirement.
28% of people have no money saved at all for retirement, according to a 2024 survey by GoBanking Rates, and only 10% of Americans between the ages of 62 and 70 are both retired and financially stable.
27% of U.S. adults have no emergency savings, as of May 2024 polling — the highest percentage since 2020. People are working hard on their finances.
If you retire with no money, you'll have to consider ways to create income to pay for 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.
Just 16% of retirees say they have more than $1 million saved, including all personal savings and assets, according to the recent CNBC Your Money retirement survey conducted with SurveyMonkey. In fact, among those currently saving for retirement, 57% say the amount they're hoping to save is less than $1 million.
Without savings, it will be difficult to maintain the same lifestyle an individual had in working years. Some retirees make adjustments by: Moving into a smaller home or apartment. Reducing television or streaming services.
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.
Federal law prohibits Social Security from paying benefits exceeding its available funds. Even if the trust fund runs out in 2035, the program will continue collecting more than $1.6 trillion each year in payroll tax contributions from workers and income taxes on Social Security benefits.
Key contrasts include Social Security, where 58% currently rely on it but only 35% expect to, and retirement accounts like 401(k)s or IRAs, expected to be a major source by 50% of nonretirees but a major source for only 29% of retirees.
So, for the purposes of the study, Bank of America set a threshold — households spending at least 90% of their income on necessities could be considered living paycheck to paycheck. By that measure, around 30% of American households are living paycheck to paycheck, according to Bank of America's internal data.
Unless you have a secret plan to get free money or you're lucky enough to hit the lottery, not saving enough for retirement will leave you scrambling to get by in old age. At the very least, you'll need to work longer or make serious adjustments to your lifestyle to get by.
Overall, 22% of Americans said not saving for retirement early enough is their top financial regret. Older generations, who are closest to retirement, were more likely to cite not starting to save early enough as their biggest regret than younger generations.
According to the Social Security Administration, or SSA, the monthly retirement benefit for Social Security recipients is currently $1,783.55 in 2024 on average. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
9% of Americans have between $100,000 and $200,000 saved, and 4% have between $200,000 and $350,000 saved.
The typical American has an average retirement savings of $489,170. Americans in their 60s have the most saved for retirement with average balances close to $1.2 million. Average account balances more than double between those in their 20s vs their 30s.
Approximately 30% of people in Britain have no savings. It's vital to save money for emergencies and for retirement. There are various ways to start saving and to improve how you save.
“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.
If your Social Security and other retirement savings allow you to retire on $4,000 per month, you're likely in good shape to retire in many cities nationwide or abroad. Aside from the most expensive markets, $48,000 annually is enough for a comfortable retirement for many retirees.
Millennials are twice as likely as any other age band to cite childcare as a reason for not saving for retirement. The life events millennials face can have a huge disruption on their ability to save. These include parental leave, childcare commitments, becoming a homeowner and career change or break.
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: $100,250 in transaction accounts (including checking and savings) $138,440 in certificate of deposit (CD) accounts.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.