ROANOKE, Va. (WFXR) — The cost of living has been the topic of conversation across the country. As families continue working to make ends meet, a report from USA Facts reflects that almost half of American households have no retirement savings.
According to the Survey of Consumer Finances, in 2022 almost half of American household retirement savings accounts were empty. The accounts included individual retirement accounts; Keogh accounts; certain employer-sponsored accounts, such as 401(k), 403(b), thrift savings accounts; and pensions.
Even though personal saving has grown more important as employers have shifted away from defined benefit plans, the pressure has been on workers to have a retirement plan. USA Facts says in 1989, half of working households ages 50 to 60 had a defined plan.
However, in 2022, only a quarter did. In that same year, about 46% of households reported any savings in retirement accounts, about 26% saved more than $100,000 and 9% had more than $500,000.
These percentages were just a little higher for older people, and people aged 50 to 54 were most likely to have a retirement account. In this age group, 63% had any savings, and 35% had saved more than $100,000.
According to USA Facts, most American households have at least $1,000 in checking or savings accounts. However, only 12% have more than $100,000 in both accounts.
The report indicates about 45% of the households getting closer to retirement age have that amount of financial assets, including checking and savings accounts, retirement accounts, stocks, bonds, and certificates of deposit.
Households that have higher percentages have a net worth of at least $100,000. But even with these assets, Americans appear to rely heavily on Social Security benefits after they stop working. The report states that workers younger than 63 are eligible for full Social Security retirement benefits at 67.
The median household between the ages of 30 and 34 had $4,700 in dedicated retirement accounts, $7,000 in checking and saving accounts, $20,100 in financial assets, and a net worth of $89,800.
Lastly, at ages 55 to 59, the median households had:
- $24,500 in retirement accounts
- $7,900 in checking and savings accounts
- $76,000 in financial assets, and a net worth of $30,700
FAQs
As families continue working to make ends meet, a report from USA Facts reflects that almost half of American households have no retirement savings. According to the Survey of Consumer Finances, in 2022 almost half of American household retirement savings accounts were empty.
What percentage of Americans have no enough retirement savings? ›
WASHINGTON—A new AARP survey finds that 20% of adults ages 50+ have no retirement savings, and more than half (61%) are worried they will not have enough money to support them in retirement.
Why are Americans not saving for retirement? ›
Another big part of the problem when it comes to saving for retirement is that savings plans are not universally available in the U.S. Almost half of private sector employees ages 18 to 64, or 57 million Americans, do not have the option to save for retirement at work.
What percentage of the US population has no savings? ›
Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding. Also, nearly one in four (22 percent) U.S. adults said they have no emergency savings.
What percent of Americans today do not have a retirement account Why is this a problem? ›
The key research findings are as follows: Account ownership rates are closely correlated with income and wealth. More than 38 million working-age households (45 percent) do not own any retirement account assets, whether in an employer-sponsored 401(k) type plan or an IRA.
What to do if you're 60 with no retirement savings? ›
If you retire with no money, you'll have to consider ways to create income to pay 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.
What percent of people over 55 have no money saved for retirement? ›
According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.
How many white people don t have enough savings to retire? ›
On average, people of color in the U.S. have less money saved for retirement than their White counterparts. More than half of Black and Latinx households have no retirement savings, while only a third of White households lack savings.
What happens if you have no retirement savings? ›
Many retirees with little to no savings rely solely on Social Security as their main source of income. You can claim Social Security benefits as early as age 62, but your benefit amount will depend on when you start filing for the benefit. You get less than your full benefit if you file before your full retirement age.
Are people saving enough for retirement? ›
For most people, it all starts with saving, whether in a bank, under a mattress, or, most commonly today, with an individual retirement account. But Kotlikoff says most middle- and working-class people simply don't save enough.
Washington, DC; February 29, 2024—ICI's latest research shows in mid-2023, 55.5 million US households, or 42.2 percent, reported that they owned individual retirement accounts (IRAs).
How much does the average American have in non retirement savings? ›
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
What percentage of US citizens have savings accounts? ›
Despite this potential for high returns, our survey revealed that while most Americans (68%) reported having a standard savings account, few are taking advantage of more lucrative options, such as high-yield savings accounts (24%) or CDs (14%).
How many Americans have $1,000,000 in retirement savings? ›
According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more.
What percentage of Americans have less than $5000 in savings? ›
Our survey found that the majority of Gen Zers (54%) and Millennials (52%) have less than $5,000 saved, compared to 42% of Gen X respondents and 29% of Baby Boomers. Unsurprisingly, the oldest generation—Baby Boomers—have amassed the most impressive savings balances.
What percentage of Americans have $300,000 in savings? ›
The poll also found that among those who have been saving for retirement, 6.7% have saved between $10,000 and $49,999, 12.6% have saved between $50,000 and $99,999, 12% have saved between $100,000 and $199,999, 9.9% have saved between $200,000 and $299,999 and 16.5% have saved $300,000 or more.
