Nearly half of American households have no retirement savings (2024)

FAQs

Nearly 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.

The reality is that retirement security is out of reach for far too many Americans. Most Americans, particularly middle-class workers, are falling far short when it comes to saving enough money for a financially secure retirement.

By the standards of most financial experts, Americans are woefully behind on saving for retirement. The reason why is rooted in changes to the country's retirement system that resulted in a flawed design for how people set aside money.

People may not have the resources to save much at all. They may have low income jobs, employers that may not have retirement options, or other issues preventing them from saving for retirement in a meaningful way, no matter how hard they try or how frugal they live.

As of May 2023, more than 1 in 5 Americans have no emergency 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.

Nearly one in three (32 percent) U.S. adults working full-time, part-time or who are temporarily unemployed estimate they would need more than $1 million to retire comfortably, but 45 percent of workers say it's unlikely they'll be able to save enough to do that, according to a new Bankrate poll.

In 2022, about 46% of households reported any savings in retirement accounts. Twenty-six percent had saved more than $100,000, and 9% had more than $500,000. These percentages were only somewhat higher for older people.

Nearly 5.3 million Americans 65 and older live in poverty, roughly 1 in 10 seniors. Nearly half of all Americans are at risk of a financially insecure retirement, up from one in three workers in 1983. The average monthly Social Security benefit in 2023 was only about $1,782, or $21,384 annually.

By some measures, millennials lag on retirement preparedness and net worth relative to older generations such as Gen X and baby boomers. There are many reasons for this, such as a shift away from pensions toward 401(k) plans and high student debt burdens.

How do people retire with no 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.

If you can set aside a solid amount of cash, you can avoid this risk by tapping into your savings when assets are down and replenishing that fund when they bounce back. Yes, it is possible to retire with $1 million at the age of 65.

According to data from the Federal Reserve's most recent Survey of Consumer Finances, the average 65 to 74-year-old has a little over $426,000 saved.

The harsh truth is that $1,000 per month is very hard to live on, even if you lower your costs to the bare minimum. With inflation causing the prices of goods and services to increase every year, $1,000 a month will become harder and harder to live on going forward.

Nearly half of American households have no retirement savings, says USA Facts. 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.

A stunning new Bankrate survey of 1,030 individuals finds that more than half of American adults (56%) lack sufficient savings to shoulder an unexpected $1,000 expense.

14% of Americans Have $100,000 Saved for Retirement

Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.

The national average for retirement savings varies depending on age, but according to the Economic Policy Institute, the median retirement savings for all working age households in the US is around $95,776.

According to the Fed data, the median net worth for Americans in their late 60s and early 70s is $266,400. The average (or mean) net worth for this age bracket is $1,217,700, but since averages tend to skew higher due to high net-worth households, the median is a much more representational amount.

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.