20 Important Retirement Statistics to Prepare for in 2024

The latest retirement statistics indicate that an increasing number of retired people have been struggling to maintain their quality of life or even make ends meet by relying only on their retirement savings.

Aside from addressing these difficulties, the statistics we have compiled should also help you assess whether you are on the right track in terms of preparing for your own retirement.                                

So, let’s dive in!

Top 10 Retirement Stats and Facts

• The average length of retirement in the US is 18 years.
• In 2021 in the US, the average retirement age for men was 65, and for women, 62.
• In the US, 32% of people aged 65 to 69 were working in 2017.
• More than 65 million people collected Social Security benefits in January 2022.
• In January 2022, the average monthly Social Security benefit was $1,657.
• 21% of working Americans don’t save anything.
• 44% of surveyed Americans with retirement savings have invested in crypto.
• Women in the US have saved less than half of what men have.
• Americans with higher levels of education typically retire later.
• 45% of baby boomers don’t have any savings.

General Statistics about Retirement

The concept of retirement is changing. Now, people are working longer hours and retiring later in life.

Keep on reading to find out more.

1. In 2021, the average retirement age for men in the US was 65, and for women, 62.

(Source: Forbes Advisor)

In 2016, the average retirement age for women was slightly higher (63), while men typically retired at 65, same as in 2021. 

The health and working conditions brought on by the pandemic, which forced 43.7% of small businesses in the US to close temporarily, are identified as the main reasons for women retiring earlier.

However, if we take a look at retirement statistics on a larger scale, the numbers have been rising across the board. For instance, in 1992, the average retirement age was 62 for men and 59 for women.

2. In the US, 32% of people aged 65 to 69 were working in 2017.

(Source: Harvard Health)

It is estimated that 19% of people aged 70 to 74 were employed in 2017. People are healthier now than they were 50 years ago. In the 1990s, a century-old trend of men retiring earlier than their predecessors has shifted. 

As health and working standards continue to improve, the average retirement age is expected to continue rising. To illustrate, in 1994, 22% of people aged 65 to 69 were working, while by 2024, 36% of people of that age are expected to be in the labor force.

3. Military retirement statistics predict that the number of US military retirees will grow to 2.23 million by 2032.

(Source: Statista)

This is a noticeable jump from the estimated 2.19 million military retirees in 2021. The amount they’re entitled to is determined by the service length, disability percentage, year of entry into the military, and retirement type.

The average benefits and total payments are expected to continue increasing, but the total outlays of the military retirement trust fund will likely fluctuate in the next few years.

4. The average length of retirement in the US is 18 years. 

(Source: Fool)

The available retirement statistics show that people nowadays retire at an average age of 63. With the national average lifespan being 81, most retirees should prepare funds for at least two decades of living without an active income. 

Of course, since a lot of people will live past 81, and since the average lifespan is constantly increasing, 18 years is a very conservative estimate, and you should plan for a longer retirement if you want to be on the safe side.

5. A quarter of US adults believe they won’t be able to retire comfortably. 

(Source: YouGovAmerica)

Some 27% of millennials don’t believe they can ever retire comfortably. In addition, baby boomer retirement facts show that about 23% of people born between 1946 and 1964 share this opinion.

6. More than 65 million people collected Social Security benefits in January 2022.

(Source: CBPP)

More than one in every six US adults collected SS benefits in January 2022. 

While older adults account for roughly four out of every five beneficiaries, another one-fifth were either young survivors of deceased workers, or they were one of more than 9 million US citizens receiving Social Security disability benefits.

SS is more than just a pension plan — it also offers vital life and disability insurance coverage. 

However, you need to be careful since there are a lot of scammers who use phishing and other fraudulent strategies, like deceptive texts, emails, and even direct mail, to commit SS fraud.

7. In January 2022, the average monthly Social Security benefit was $1,657. 

(Source: US News)

Social security retirement statistics show that in 2022, the maximum possible monthly SS benefit for people retiring at full retirement age was $3,345. 

To receive this payment, people would need to earn the maximum taxable amount, which, in 2022, amounts to $147,000, over a 35-year career. 

Depending on your income and other factors, your benefits might be taxed as well. The formula for calculating this might seem convoluted, but if you know how to file back taxes, you should have no trouble calculating how much you’ll be expected to pay.

Retirement Savings Statistics

We’ve already mentioned that people live longer lives, so saving for retirement might require a larger investment than it used to.

In this section, you’ll find the most pertinent stats about retirement savings.

8. Approximately 27% of US citizens are contributing less or nothing to their retirement savings due to the pandemic.

(Source: FinanceBuzz)

It’s estimated that 22% of small businesses closed in February of 2021. The pandemic has taken a toll on many people’s finances, including illness, inability to work, and job losses. 

According to recent retirement trends, rising inflation is eating a large chunk of people’s budgets. So, it isn’t surprising that many Americans are falling behind on their retirement savings.

Some 21% of US citizens have yet to begin saving for retirement, including 45% of Generation Z and 20% of millennials.

9. On average, Americans have about $141,542 in retirement savings. 

(Source: Vanguard)

According to a report compiled by Vanguard, most people have less than the average retirement savings. The median 401(k) balance is only $35,345.

10. Approximately 21% of working Americans don’t save anything.

(Source: Bankrate)

Retirement saving statistics show that more than one in five working Americans don’t save for retirement. Unfortunately, this figure has remained stable in recent years, hovering around 20% or 21% since 2016.  

Hopefully, the fact that the US corporate bankruptcy rates went down in 2021 and that people are becoming increasingly aware of the importance of saving for retirement means that these numbers are likely to go up.

11. Some 44% of the surveyed US adults with retirement savings have invested in crypto.

(Source: FinanceBuzz)

There are over 27 million crypto owners in the US. 

Almost half of the 1,000 Americans included in the FinanceBuzz survey said they invested a part of their retirement savings in cryptocurrency. This isn’t surprising since there are more than 8,000 cryptocurrencies available on the market, many of them with trading value.

12. Baby boomers retirement savings statistics show that 45% don’t have savings.

(Source: Investopedia)

Baby boomers are in worse financial shape than previous generations.

Nearly half of them haven’t saved up for retirement, while 28% of those who have savings have less than $100,000.  

13. Current estimates indicate that 10%–16% of US households have at least $1 million in retirement accounts. 

(Source: Zippia)

If we take a look at households’ net worth, then the figure approaches 20%. However, if we only focus on individuals with $1 million or more in retirement savings, the figure drops to 10%.

Retirement Demographics

Who saves more — men or women? Read on to find out about this and other alarming stats and facts. 

14. Social Security is very important for people of color.

(Source: CBPP)

SS is an essential source of income for people with low salaries and fewer opportunities to save and earn pensions, such as Latino and Black workers. 

They also typically face higher poverty rates — poverty is about 2.5 times higher among people of color than among Caucasians.

15. White Americans invested more in retirement assets than Hispanic or Black Americans.

(Source: EPI)

Only 35% of Hispanic and 41% of Black people had 401(k) or IRA savings in 2016. 

The percentage of Hispanic families with retirement account savings was 38% in 2007, while the share of Black families was 47%. When it comes to white non-Hispanic families, 68% had retirement savings in 2016, a similar figure to that in 2007, when 67% of them did.

16. Stats on retirement show that the gender pension gap is estimated to be 30%–40%.

(Source: WEForum)

Women’s retirement savings are lower than men’s worldwide. For example, in Europe, the gender pension gap varies across countries, ranging from 4% to 49%, with more than half of them having a gap of 30% or bigger.

17. Women in the US have saved less than half of what men have. 

(Source: Investopedia)

While the average savings for men amount to $118,000, women have an average of $57,000 in retirement savings. Along similar lines, even though 35% of men have at least $250,000 in savings, there are only 24% of women who have saved that amount.

18. The average retirement statistics by age in Massachusetts, Hawaii, and South Dakota is 66.

(Source: GOBankingRates)

These states have the highest average retirement age in the US, aside from the District of Columbia, where it’s 67.

Despite this similarity, the savings needed for retirement in these states are wildly disparate. For example, while $1,692,722 is required to retire comfortably in Hawaii, only $786,497 is needed in South Dakota.

19. Americans with higher levels of education retire later.

(Source: Forbes Advisor)

While male high school graduates tend to leave the workforce when they’re 62.8, college graduates retire at the age of 65.7. 

Retirement facts show that one of the reasons for this might be that less educated people tend to have poorer health and work in harsher conditions, so they’re more likely to retire earlier. 

20. The number of Americans aged 65 and up is expected to double.

(Source: AARP)

The estimated number of Americans older than 65 is expected to go from 40.2 million in 2010 to 88.5 million by 2050. In the same period, the number of people aged 85 and up will almost quadruple, rising from 5.8 million to 19 million.

Wrapping Up

We hope that these retirement stats have managed to convince you that thinking about retirement planning on time is in your best interests.

Of course, although it’s never too early to start saving for retirement, that doesn’t mean you should give up the things you enjoy now.