April 26, 2023
Most Americans are woefully poorly prepared for retirement. The typical American between the ages of 55 and 64 has just $120,000 in his retirement savings account, based on an analysis of Federal Reserve Bank data by accounting firm PwC. While the majority of retirees supplement their savings with Social Security income, the average monthly Social Security payment is just $1,694, not enough to cover normal living expenses, let alone luxuries such as travel and dining out. is not.
As a result, the number of Americans working past retirement age is growing rapidly. More than 26% of Americans aged 65 to 74 will still be working in her 2020, and that percentage will reach 32% by 2030, according to Bureau of Labor Statistics data. Predicted. In 1995, about 17.5% of Americans that age were working. And that percentage was even lower before then.
A certain amount is expected to be required for those who do not want to work past the age of 65 but who are financially stable. This amount should be considered for retirement expenses and may come from retirement savings or other sources of income.
The typical retirement-age American will spend $52,141 in 2021, according to the Bureau of Labor Statistics’ consumer spending survey. Adjusting this figure for state-level average cost of living, inflation, and life expectancy at age 65 provides an additional 15% financial cushion – California residents average $1,482,796 over the course of their retirement beginning at age 65. You can reasonably expect to spend. This is her second highest amount in any state.
It is important to note that this figure does not reflect retirement savings targets, as investment and interest income, pension plans, and social security can each supplement retirement savings.