Are you nearing retirement age or already retired but wondering how you stack up? Retirement comes with many questions, such as wondering if you have enough savings or how your income taxes might change. Looking at retirement statistics can help you prepare for leaving the working world behind. It can also help you determine if your retirement experience is similar to other seniors. Check out these retirement statistics to learn more about the golden years.
When it comes to the average retirement age, there's a bit of a gender gap. Men retire at 65 on average, while women tend to retire a little earlier at 62. Those numbers have increased over the last several decades. In 1992, men typically retired at 62 while women averaged a retirement age of 59.
Statistics also show that education level can impact retirement age, with people having a higher level of education typically retiring later. Lots of factors go into deciding when to retire. For many people, how much retirement savings they have and how long it might last can impact the decision. Health issues could force some people to retire early.
You can start receiving Social Security benefits at age 62, but you'll receive a lower amount each month for the rest of your life. To receive the full amount per month, you need to work until your full retirement age, which varies based on birth year. It ranges from 66 to 67. People born between 1943 and 1954 reach full retirement age at 66. If you're born in 1960 or later, your full retirement age is 67. Birth years between 1955 and 1959 have an additional 2 months for every year above 1954. For instance, if you're born in 1955, your full retirement age is 66 years and 2 months. If you're born in 1958, it's 66 years and 8 months.
Close to 67 million people will receive Social Security each month in 2023. This includes retired people as well as disabled workers, dependents and survivors. It's a major source of income for older adults, with almost nine out of 10 people who are 65 or older receiving the benefits. Older adults receive an estimated 30% of their income from Social Security.
By the end of 2020, the average balance of a 401(k) plan was $87,040. This takes into account all age groups, not just retirees. The years of tenure impacted the balance amounts. For instance, people in their 60s with 0 to 2 years of tenure averaged $59,771, while that same age group with more than 30 years of tenure averaged $351,174. If your 401(k) balance is lower than you want, you're not alone. It could be time to step up your contributions if you're still working. The recommended amount to have by the time you reach age 67 is 10 times your salary. You can make catch-up contributions to increase your savings as you get closer to retirement.
Just because you retire doesn't mean you're done working forever. A survey from Paychex showed that one in six retirees surveyed said they were considering going back to work. The reasons for considering a return to the workplace varied, with 53% saying it was due to needing more money. Another common reason was boredom, with 52% of respondents listing it as one of the reasons they were thinking about going back to work. Loneliness was a motivator for 43% of those surveyed. Of retirees who actually went back to work, 55% said it was because they needed the money.
Where does your money go in retirement? Housing is typically one of the biggest expenses, with almost a third of monthly income going to it on average. Food is the next largest expense. Monthly spending in retirement came in at under $2,000 for about half of retirees. Monthly expenditures of $2,000 to $3,999 were normal for one in three retirees. For 16% of retirees, monthly spending was between $4,000 and $6,999. At the high end, only about 3% of retirees spent $7,000 or more each month.
People who are still working have lots of plans for their retirement years. Travel is a popular plan, with 65% of people hoping to do so in retirement. Spending time with friends and family will be a retirement priority for 59% of people, and 51% plan to spend time on hobbies when they retire. Those plans might change as you retire depending on how much retirement savings you have and how your health is after you retire. Your location can also impact how you spend your time. For instance, if you live far away from your family, you might not be able to spend as much time with them as you want.
No matter how you plan to spend your retirement years, Bethesda Gardens Phoenix can help you live your life to the fullest. Lots of on-site amenities make life enjoyable and offer convenience. With assisted living and memory care options, the community offers the support you need as you get older.
