New AARP Survey: 1 in 5 Americans Ages 50+ Have No Retirement Savings and Over Half Worry They Will Not Have Enough to Last in Retirement
AARP is Working to Turn the Tide at the State and Federal Levels, With at Least 19 States Taking Action to Date
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. The findings also reveal a decline in overall sense of financial security among men, 42% of whom describe their financial situation as “fair” or “poor,” up from 34% in the beginning of 2022. However, roughly 40% of men who are regularly saving for retirement believe they are saving enough, compared to just 30% of women.
“Every adult in America deserves to retire with dignity and financial security. Yet far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” said Indira Venkateswaran, AARP Senior Vice President of Research. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire.”
Nearly one-third (30%) of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10K or more, while 12% described their balance as $20K or more, up from 8% roughly a year ago.
Despite this, 33% of respondents ages 50+ believe their finances will be better 12 months from now, but the lingering effects of inflation and high costs are still apparent:
- More than one-third (37%) are worried about covering basic expenses, such as food and housing.
- More than a quarter (26%) are worried about covering family caregiving costs.
- Seven in 10 (70%) are worried about prices rising faster than their income.
- Over a quarter (26%) of people who are not yet retired say they expect to never retire.
“America is facing a serious retirement crisis. AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “We have worked with 19 states to create programs to make it easier for people whose employers don’t offer a retirement plan to be able to save for their future. But about two-thirds of states have yet to act, and we await action from the federal government.”
Americans are 15 times more likely to save for retirement when they have access to a workplace plan. Yet nearly 57 million people do not have access to a retirement plan at work.
Congress is currently considering different pieces of legislation that would expand retirement security, including the bipartisan Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans, and the Automatic IRA Act of 2024.
Eight states have auto-IRA programs up and running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia, while Massachusetts has a multiple employer plan in place. Ten other states have passed legislation and are at various stages of implementation, including Washington, where auto-IRA legislation was signed into law last month.
To view the full Financial Security Trends Survey and methodology, visit aarp.org/financialtrends. And learn more about AARP’s ongoing efforts to make it easier for everyone to save for retirement.
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About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.
FAQs
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.
Which age group has the least amount saved for retirement? ›
Median retirement savings balance by age
| Age group | Median retirement savings balance amount |
|---|
| Under 35 | $18,880. |
| 35-44 | $45,000. |
| 45-54 | $115,000. |
| 55-64 | $185,000. |
2 more rowsMay 7, 2024
About 1 in 4 Americans have no retirement savings, according to research released Wednesday by the organization that shows how the aging American population is worrying more and more about how to make ends meet, even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years ...
Can I retire at 60 with 300k? ›
£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.
What percentage of retirees have $2 million dollars? ›
According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.
How to retire at 55 with no money? ›
6 Steps to Consider Immediately If You're 55 With No Retirement Savings
- Calculate Your Expected Retirement Spending. ...
- Fund Your 401(k) to the Max. ...
- Open an IRA Immediately and Fund It. ...
- Utilize Catch-Up Contributions. ...
- Calculate How Much You'll Receive From Social Security. ...
- Find the Right Investments for the Next 10 Years.
You can retire a little early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will give you a significantly more comfortable retirement.
What's a good monthly retirement income? ›
Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
How much does the average 70 year old have in retirement funds? ›
How much does the average 70-year-old have in savings? Just shy of $500,000, according to the Federal Reserve. The better question, however, may be whether that's enough for a 70-year-old to live on in retirement so that you can align your budget accordingly.
What happens when you retire with no money? ›
You may have to rely on Social Security
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.
Americans who earned lower-income wages while working will naturally get a lower Social Security check once they retire. As of March 2024, the average retirement benefit was $1,864.52 a month, according to the Social Security Administration.
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.
Is $300000 enough to retire on with Social Security? ›
If you earned around $50,000 per year before retirement, the odds are good that a $300,000 retirement account and Social Security benefits will allow you to continue enjoying your same lifestyle. By age 55 the median American household has about $120,000 saved for retirement, and about $212,500 in net worth.
How long will $300,000 last me in retirement? ›
This is also not accounting for rising costs due to inflation, large, unexpected costs and taxes. On the other hand, if they're able to continue to live this affordably, they can estimate their $300,000 in savings will last approximately 25 years.
How long will $400,000 last in retirement? ›
Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.
What percentage of Americans have $0 saved for retirement? ›
As many as 28% of Americans have nothing saved for their retirement, 39% aren't contributing to a retirement fund and another 30% don't think they'll ever be able to retire. That's according to a new GoBankingRates survey.
How much should a 55 year old have saved for retirement? ›
Suggested savings: The general guidelines recommend having eight times your annual salary saved by 60. The median income for a 55-year-old is about $63,000, which means having $506,600 saved for retirement. The average savings for those 55-65 is $256,244.
Is 55 too late to save for retirement? ›
If you're between 55 and 64, you still have time to boost your retirement savings. Start by increasing your 401(k) or other retirement plan contributions if you aren't already maxed out. Consider whether a bigger pension or a higher Social Security benefit is worth working a little longer.
What percentage of 55 year olds are retired? ›
"Early retirement" has decreased significantly over the past two decades: the percentage of people retiring between ages 50-54 has declined from 9% to 6%, and the rate of people retiring between ages 55-59 has dropped from 19% to 11%.
