27 Retirement Statistics You Should Know for 2023

Written by Joe Har
on June 5, 2024
10:12 am

Introduction

In an era marked by shifting economic landscapes and a growing retirement crisis, it has become increasingly vital to understand the present and future landscape of retirement in the United States. As we venture into 2023, the retirement journey is marred by challenges such as increasing debt, insufficient savings, and the ever-evolving nature of social security benefits. To grasp the true essence of retirement in this era, we must turn our attention to the crucial statistics that encapsulate this ongoing narrative.

America’s Looming Retirement Challenge: Key Stats for 2023

America faces a growing retirement crisis, with many individuals grappling with insufficient savings, leading them to work into their senior years just to cover living expenses. The situation could worsen over the next decade as social security benefits face potential cuts of up to 20%, while the retirement age to receive benefits is expected to increase. To provide insights into the current and future state of retirement in the U.S., here are essential statistics for 2023:

Statistics on Retirement Age

The average retirement age is 64.7 for men and 62.1 for women (Zippia).
Retirement age has been on the rise, increasing from an average age of 57 in 1991 (CNBC).
The expected retirement age has also climbed from age 60 in 1995 to 66 in 2018 (Gallup).
U.S. life expectancy now stands at 79.1 years, up by 16.15% from 1950 (Macrotrends), highlighting the need for increased retirement savings.
Approximately 20% of Americans are delaying retirement due to inflation (GoBankingRates)
51% of Americans retire between ages 61 and 65, with 69% retiring by age 66, and 89% by age 75 (Financial Samurai)
Nearly half (46%) of Americans aged 60-75 plan to work part-time during retirement (Forbes)
Shockingly, 1 in 12 Americans believe they’ll never retire (RITA)

Statistics on Retirement Savings

Average retirement savings by age (Nerdwallet)
Under 35: $30,170
35-44: $131,950
45-54: $254,720
55-64: $408,420
65-74: $426,070
Americans typically start saving for retirement at age 31 (The Motley Fool)
In 2022, Americans saved an average of $5,011 for retirement (CNBC)
A concerning 55% of Americans admit they are behind on their retirement savings (Bankrate)
A startling 32% of working-age Americans have no retirement savings at all (Benefits PRO)
38% of Americans worry about outliving their savings and investments (Yahoo)
While 25% of Americans believe they need over $1 million to retire comfortably, 38% think that less than $250,000 is adequate (Zippia)
In 2022, 41% of Americans stopped contributing to their retirement funds due to rising costs of living, while 32% withdrew funds from their retirement savings to cope with inflation (SHRM)

Statistics on Retirement Planning

Nearly 7 in 10 (67%) Americans aged 50-74 lack a formal retirement plan, and 4 in 5 lack retirement planning basics (Magnify Money)
A significant 67% of retirees wish they better understood retirement savings during their working years, with 57% acknowledging they started saving too late (Yahoo)
Since the onset of the COVID-19 pandemic, 72% of individuals have reevaluated their retirement plans (U.S. News)
A striking 73% believe that the generation following theirs will face even greater retirement challenges (U.S. News)
About 67% of individuals reported their employers offered a 401(k) or similar employer-sponsored retirement plan, with 77% of them opting to participate (FA Mag)
Notably, 60% of retirees say their former employers failed to adequately prepare them for retirement (Clever)

Post-Retirement Statistics

A concerning 44% of retirees grapple with affording basic living expenses (Clever)
Surprisingly, 71% of retirees continue to carry debt throughout their retirement years (Yahoo)
Shockingly, 12% of older Americans rely exclusively on Social Security for their retirement income (CNBC)
Almost half (48%) of retirees believe they will outlive their savings (Clever)
Worryingly, 37% of retirees have depleted their retirement savings entirely, marking an increase from 30% in 2022 (Clever)

Conclusion

The journey towards a secure and fulfilling retirement is fraught with obstacles, as highlighted by the compelling statistics for 2023. With rising retirement ages, mounting debts, and varied levels of preparedness, the need for careful planning and financial literacy has never been more evident. However, in the face of these challenges, there is hope. By harnessing the value of underutilized assets like life insurance policies through life settlements, individuals can take meaningful steps toward securing their retirement dreams. So, as we navigate this complex retirement landscape, let these statistics serve as a compass to guide us towards a more secure and prosperous retirement future.

Discover the value of your policy with Moss Life Settlements today!