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50 Must-Know Retirement Statistics and Facts in 2020

50 Must-Know
Retirement Statistics
and Facts in 2020

A beach chair sitting on a pile of money

When you think of retirement, what comes to mind?

Maybe it’s those ideal days where you can focus on your hobbies or spending time with your grandchildren. Or, maybe it’s in regards to how much you’ve saved. Whatever it may be, your golden years are meant to be the light at the end of the tunnel for your career. But, much planning comes into play in order to be satisfied throughout your retirement.

We researched the latest retirement statistics and facts in 2020 to get a picture of what retirement looks like for Americans.

Retirement Planning

Retirement Age

Cost of Living

Retirement Benefits

401(k)

Life After Retirement

Retirement Planning

Out of all of the non-retired people over the age of 60 in the U.S., 13% have no retirement savings.

The Federal Reserve

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60% of non-retirees who hold self-directed retirement savings accounts, such as a 401(k) or IRA, have little to no comfort in managing their investments.

The Federal Reserve

More than half (56%) of Americans don’t know how much they’ll need to retire.

Northwestern Mutual

More than 22% of Americans had less than $5,000 saved for retirement and 15% had no retirement savings in 2019 One year prior, 31% had less than $5,000 saved and 21% had no retirement savings at all.

Northwestern Mutual

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Half of private industry workers (51%) only had access to defined contribution retirement plans.

U.S. Bureau of Labor Statistics

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2 out of 3 workers are confident in having enough money to retire comfortably.

EBRI

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70% of people say their non-mortgage debt has impacted their ability to save for retirement.

EBRI

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71% of Americans say that they are afraid that there will be no available Social Security funds when they retire.

Wells Fargo

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41% of millennials, 35% of Gen Xers and 30% of baby boomers have no access to an employee-sponsored retirement plan.

PEW

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54% of people currently have a retirement strategy, but only 12% wrote it down.

Transamerica Center For Retirement Studies

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2 out of 3 of workers with student loan debt say the burden impacts retirement saving.

Wells Fargo

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15% of workers aged 65+ had been with their employer two years or less in 2018.

U.S. Bureau of Labor Statistics

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Nearly 2 out of 3 people in their 40s have less than $100K saved for retirement.

TD Ameritrade

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3 out of 4 (75%) of Americans say the U.S. faces a retirement crisis.

National Institute on Retirement Security

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Retirement Age

For those 65 and older in the U.S., 99% have health insurance coverage.

U.S. Census Bureau

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The number of Americans aged 65 and older is projected to be 88.5 million by 2050.

U.S. Census Bureau

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There are an estimated 52.4 million U.S. citizens 65 years old and older.

U.S. Census Bureau

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By 2030, the U.S. population is expected to become older with nearly 20% of U.S. residents aged 65 and older.

U.S. Census Bureau

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There are 8.7 million U.S. military veterans aged 65+ in the U.S.

U.S. Census Bureau

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The average life expectancy for a man turning age 65 in 2020 is age 84.

Social Security Administration

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The average retirement age for a full-time permanent employee is 62 years old.

U.S. Office of Personnel Management

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There is expected to be 43 million people aged 55 and older in the workforce by 2028 — nearly one-quarter of all workers.

U.S. Bureau of Labor Statistics

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The average life expectancy for a woman turning age 65 in 2020 isage 87.

Social Security Administration

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In 1940, the life expectancy of a 65-year-old was 14 years while in 2020 it’s over 20 years.

Social Security Administration

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Cost of Living

The average couple will need an estimated $285,000 for medical expenses in retirement (excluding long-term care).

Fidelity

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For those who are 65+, the total annual expenditures average $43,000.

U.S. Bureau of Labor Statistics

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For those who die at age 95 or older, the median out-of-pocket expense after age 70 is more than $27,000.

EBRI

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42% of people are concerned about outliving their assets.

Schroders

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More than one in four (28%) of retirees have mortgage debt.

Transamerica Center For Retirement Studies

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Retirement Benefits

67% of people don’t think that the amount they receive in Social Security will be enough to live on.

Schroders

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67% of nonunion workers have access to retirement benefits through their employer.

U.S. Bureau of Labor Statistics

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94% of civilian union workers have access to retirement benefits through their employer.

U.S. Bureau of Labor Statistics

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In 2018, 68 million people received benefits from programs administered by the Social Security Administration.

Social Security Administration

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About 45 million retired Americans will receive over $67.7 billion in Social Security benefits in 2020.

Social Security Administration

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The average Social Security retirement benefit was $1,461 a month, or $17,532 a year in 2019.

Social Security Administration

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401(k)

More than three out of four of Americans say employers need to contribute more to their retirement.

National Institute on Retirement Security

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The 401(k) was established through The Revenue Act which was passed by Congress in 1978.

EBRI

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Although surveyed 401(k) participants believe they need $1.7 million to retire, many are not investing enough to reach that goal.

Charles Schwab

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Congress passed The Revenue Act in 1978, which states that employees are not taxed on a portion of income they elect to receive as deferred compensation.

EBRI

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Life After Retirement

The top three states that retirees are moving to are Florida, Arizona and South Carolina.

SmartAsset

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Only 4.5% of Americans over the age of 65 live in nursing homes.

NIH

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The rate of cognitive decline with age is 70% less in people with frequent social contact than those with low social activity.

PMC

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77% of people would like to remain in their community for as long as possible after they retire.

AARP