The Age of Retirement

Saving for retirement may not seem like a priority in your twenties, but most financial advisors recommend it. The earlier you start putting money away, the easier the task may seem as you age.

Quick Facts

  • The average retirement age is 63.
  • The average length of retirement is 18 years.
  • The average savings of a 50 year old is $42,797.
  • 6,100 Americans turn 65 every day.
  • The average net worth of a 55-64 year old is $45,447.
  • The total cost for a couple over 65 to pay for medical treatment over a 20 year span is $218,000.
  • 80% of people ages 30-54 believe they will not have enough money to put away for retirement.
  • 38% of Americans over 65 rely completely on social security.
  • 38% of Americans don’t save anything for retirement.
  • 13% of the population is 65 years of age or older.

How much do you need?

Saving for retirement can seem like an abstract goal. Here are real figures about how much you’ll need based off of your monthly expenses.

Expected Monthly ExpensesSavings Needed For 20 YearsSavings Needed for 30 Years
$1,000
$166,696
$212,150
$2,000
$333,392
$424,300
$3,000
$500,087
$636,450
$4,000
$666,783
$848,601
$5,000
$833,479
$1,060,751
$6,000
$1,000,175
$1,272,901
$7,000
$1,166,871
$1,485,051
$8,000
$1,333,567
$1,697,201
$9,000
$1,500,262
$1,909,351
$10,000
$1,666,958
$2,121,501

These sums assume your portfolio will earn a 6 percent annualized return during the course of your retirement and endure 2 percent annual inflation erosion.

MBA@American
Analytics@American
Source: U.S. Census Bureau, Saperston Companies, Bankrate, Statistics Brain

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