57+ Must-know Retirement Statistics [2023] | Credit.com (2024)

American 401(k) Statistics

A 401(k) account is one of the main ways Americans save for retirement. Below are facts and figures about this popular retirement account.

• Approximately three in four workers are eligible for a 401(k) or similar plan through their employer. (Transamerica Institute)
• Three in four of those eligible for a 401(k) or similar plan contribute a median of 12 percent of their salary into their plans. (Transamerica Institute)
• 37 percent of workers have taken out a loan or withdrawn early from their 401(k), IRA or another retirement plan. (Transamerica Institute)
• The median amount employees contributed to their 401(k) in 2020 was $3,599. (United States Census Bureau)

Social Security

The Social Security retirement benefit is meant to serve as a source of income for Americans after they retire. We’ve outlined relevant information about Social Security below.

• Approximately 67 million U.S. citizens will receive a Social Security benefit in 2023. (Social Security Administration)
• In 2022, 76.9 percent of total Social Security benefits were paid to retirees and their dependents. (Social Security Administration)
• About 30 percent of the income of the elderly comes from Social Security benefits. (Social Security Administration)
• 37 percent of elderly male Social Security beneficiaries and 42 percent of elderly female beneficiaries rely on Social Security for 50 percent or more of their income. (Social Security Administration)
• 71 percent of U.S. workers are concerned that Social Security will not be there for them when they are ready to retire. (Transamerica Institute)

• 24 percent of workers anticipate relying on Social Security throughout retirement. (Transamerica Institute)
• In the prior year, 78 percent of retirees received benefits from Social Security. (Federal Reserve)
• Of retirees age 65 or older, 92 percent received income from Social Security in the prior year. (Federal Reserve)
• 37 percent of U.S. workers cited the termination or reduction of Social Security as a retirement fear. (Transamerica Institute)
• 52 percent of workers identified addressing Social Security funding as their top retirement security priority for the government. (Transamerica Institute)

Retirement Demographics

Retirement can vary by demographics such as age, race, and gender as seen in the statistics below.

Retirement Age

The ages at which people retire vary greatly. Here are some retirement age statistics.

• In 2020, the average age of retirement across OECD countries for people who entered the job market at the age of 22 was 63.4 for women and 64.2 for men. (OECD)

• The countries with the highest normal retirement age of 67 are Iceland, Norway and, for males only, Israel (OECD)
• The country Turkey has a much lower-than-average retirement age at 49 for women and 52 for men. (OECD)
• In the United States, almost half of millennials (49.5 percent) own a retirement account. (United States Census Bureau)
• As of 2020, the baby boomer generation was the most likely to own a retirement account. (United States Census Bureau)
• Although Gen Z is the least likely generation to have a retirement account, they have the most time to save before retirement. (United States Census Bureau)
• 28 is the median age full-time workers started saving for retirement. (Transamerica Institute)
• In the U.S., almost 40 percent of employees plan to retire at age 70 or older. (Transamerica Institute)

Retirement by Gender

In terms of saving for retirement, there are some significant differences between men and women.

• In 2020, more men (47.8 percent) than women (43.5 percent) owned a retirement account. (United States Census Bureau)
• 30 percent of men over six figures in personal retirement savings, compared to 22 percent of women. (United States Census Bureau)
• Approximately half of women and 47 percent of men ages 55 to 66 don’t have any retirement savings. (United States Census Bureau)
• Men are more confident than women in reaching their retirement savings goals. (Goldman Sachs)
• Women are more likely than men to retire earlier than expected due to unforeseen circ*mstances. (Goldman Sachs)

Retirement by Race and Ethnicity

Saving for retirement can vary by race and ethnicity as seen in the statistics listed below.

• In 2020, over half (54 percent) of white Americans owned a retirement account. (United States Census Bureau)
• Just under half (46.8 percent) of Asian individuals owned a retirement account in 2020. (United States Census Bureau)
• In 2020, 37 percent of Black individuals had at least one retirement account. (United States Census Bureau)
• 36.1 percent of individuals who identified as Other, such as American Indian, Alaska Native, Native Hawaiian or Other Pacific Islander or multiracial, owned a retirement account. (United States Census Bureau)
• Among those not yet retired, White and Asian individuals were more likely to save for retirement and believe they are on track than Black and Hispanic individuals. (Federal Reserve)
• In the U.S., Hispanic individuals have the lowest rate of retirement account ownership at 28.3 percent (United States Census Bureau)

Retirement Savings Statistics

Saving money for retirement is a big undertaking. Here are some statistics that show how Americans view saving for retirement.

• 63 percent of American workers are actively saving money for retirement. (Social Security Administration)
• As of late 2021, workers have an estimated median of $67,000 of retirement savings. (Transamerica Institute)
• 53 percent of employees believe that debt is impeding their ability to save money for retirement. (Transamerica Institute)
• Over half of U.S. workers (56 percent) stated that saving for retirement was their top financial goal. (Transamerica Institute)
• 65 percent of workers believe that they are saving an adequate nest egg for retirement. (Transamerica Institute)

Retirement FAQ

We’ve answered some frequently asked questions about retirement below.

How Much Does the Average Person Have Saved for Retirement?

According to a 2022 Vanguard Institutional study, the average amount surveyors have saved for retirement is $141,542.

What Percentage of Retirees Have a Million Dollars?

It is estimated that 10 percent of retirees have a million dollars, according to SmartAsset.

Can I Retire on $2 Million at 65?

Whether or not you can retire on $2 million at 65 years old depends on your lifestyle.

To determine how much money to save for retirement, many experts suggest living on 80 percent of your preretirement annual income per year.

If debt and a poor credit score are preventing you from saving for retirement, Credit.com has resources and tips to help you manage your financial life. To begin managing your credit and your debt, sign up for a free credit report card or check out ExtraCredit. Our services could help your credit and educate you about managing your finances to better prepare for retirement.