Everyone’s lives take them down different paths, but most working people share a common goal: to eventually be able to retire. After working for the majority of your life and saving money along the way, retirement is a life chapter that you deserve to experience in the best possible way. Getting to that point, however, requires detailed preparation, and as the stats about retirement show, not everyone is adequately prepared.
Here are 15 surprising stats about retirement that may incite you to start preparing sooner rather than later.
- According to the U.S. Census Bureau, the senior population (ages 65 and older) is expected to nearly double to 83.7 million people by the year 2050, up from 43.1 million people in 2012.
- The Centers for Disease Control and Prevention reports that life expectancies have risen by nine years between the mid-1960s and the mid 2010s to nearly 79 years.
- A 60-year-old man can expect to live an average of 21 more years, while a 60-year-old woman can expect to live an average of 24 more years.
- The Centers for Medicare and Medicaid Services predicts that out-of-pocket health costs per capita will reach more than $1,300 per person by 2021.
- Prescription drug prices increased 104 percent for seniors between 2006 and 2013.
- One-third of American households have $0 saved for retirement, according to a GoBankingRates survey.
- The U.S. personal savings rate, according to the St. Louis Federal Reserve, is only 5.4 percent.
- Nearly one-third of homeowners 65 and older had a mortgage in 2011, up from 22 percent in 2001.
- More than 10,000 baby boomers are qualifying for Social Security every day.
- The Social Security Administration suggests that benefits are only designed to replace 40 percent of your working wages.
- A report issued by the Social Security Office of Retirement and Disability Policy predicts that 58 percent of Social Security recipients will be taxed on their benefits by the year 2030.
- In 2017, the average monthly Social Security benefit was $1,369 for retired workers and $1,172 for disabled workers.
- There are currently 2.8 workers for every Social Security beneficiary. By 2035, there will be 2.2 workers for each beneficiary.
- Medicare typically covers about 20 percent of your eligible medical expenses.
- Medicare does not cover regular vision, dental or hearing care.
These and other stats about retirement show that the money you will need to have saved by the time you stop working full time is not insignificant. A growing population means a higher division of resources, and longer life expectancies mean a longer time you will have to account for financially in retirement.