🚨 Retirement Crisis: Golden Years in the Red 🚨
Two-thirds of retired Americans say the U.S. is in a retirement crisis (66%). The average retiree owes $15,393 in non-mortgage debt, and 40% worry they will outlive their retirement savings.
Retirement Crisis | Nothing Saved | Retired Women | Lack of Planning | Blaming the Boss | Leaving the Workforce | Retirement Debt | Retirement Income | Retirement Costs | Back to Work | Homeownership in Retirement | Retirement Calculator
The financial outlook for baby boomers has gone from boom to bust, as climbing expenses and outstanding debts threaten to poach their nest egg.
A new Clever survey reveals 2 in 3 U.S. retirees say the country is in a retirement crisis (66%). About 40% worry they will outlive their retirement savings — and 1 in 5 already have (19%).
Nearly a quarter of all retirees even say they won't have enough saved to cover their eventual funeral expenses (23%).
The situation is especially bleak for retired women, who are 33% more likely than men to say they don't have enough money saved for a comfortable retirement. About 28% of retired women have nothing saved, compared to 20% of men.
Despite a few positive developments — a recovering economy and a cost-of-living increase for Social Security — the overwhelming majority of retirees say the government should do more to help them (80%).
To learn more about the state of retirement in the U.S., Clever Real Estate surveyed 1,000 retired Americans. Read on to learn more about the silver squeeze gripping Americans' golden years.
Retirement Statistics 💸
- The median retiree has $142,500 in savings — 4x less than the recommended minimum for starting retirement ($572,000). Jump to section 👇
- 46% of retirees have no plan if their retirement savings run out, yet 2 in 5 (40%) worry they will outlive their savings entirely. 👇
- 25% of retirees have nothing saved for retirement, and 15% rely on their children for financial support. 👇
- Women are 38% more likely than men to say they have nothing saved for retirement. 👇
- The median retired woman has $100,000 saved, compared to $217,500 for men.
- 1 in 4 retirees (25%) say they're ashamed of their lack of retirement planning. 👇
- 54% of retirees say they retired earlier than planned — with 82% of that group retiring before age 65. 👇
- In most cases, those aren't success stories. About 38% retired early due to health problems, and 14% were laid off and chose not to find a new job.
- Retirees average about $15,393 in non-mortgage debt. 👇
- Retired women are about 60% more likely to say they're in medical debt compared to retired men.
- About 1 in 8 retirees (12%) rely entirely on Social Security for income. 👇
- 4 in 5 retirees (80%) say the government should do more to help people in retirement.
- Nearly 1 in 4 retirees won't have enough saved to cover funeral expenses (23%), and about 45% can't afford to leave behind any inheritance. 👇
- 54% of retirees were surprised by how much it costs to retire.
Why 2 in 3 Retirees Say the U.S. Has a Retirement Crisis
Heading into 2024, most retirees have a fraction of what they'll need for a comfortable retirement.
Half of U.S. retirees have less than $145,000 saved, about four times less than the $572,000 experts recommend for retirement (based on 10x the median worker's pre-retirement income).
Those who retired in 2021 or later are in even worse shape, with half sitting on $90,000 or less. Overall, the average retiree has about $269,078 in savings, still less than half the recommended amount for starting retirement ($572,000).
Given the substantial nest egg needed for an adequate retirement, 40% of retirees worry they will outlive their savings, and 46% say they have no plan if their savings run out.
That risk is real. About 1 in 5 retirees say their savings have already run out (19%), and 1 in 10 (10%) have skipped meals to preserve their retirement savings.
Despite economic progress in 2023, many retirees still feel the lingering effects of a hectic 2022. Nearly 7 in 10 retirees (68%) say the current economic climate has impacted their retirement finances.
Retirees say they are doing the following due to the recent economic climate:
- Spending less because of high costs (47%)
- Feeling the effects of inflation eating into their savings (32%)
- Moving money into less risky investments (10%)
- Preparing to lose more money (8%)
Unpredictability is still affecting retirees' ability to plan ahead, with 62% concerned the 2024 presidential election will impact their retirement savings.
25% of Retirees Say They Have No Money Saved for Retirement
At the most alarming end of the spectrum, 25% of retirees say they have nothing saved for retirement. In addition, more than 1 in 7 retirees (15%) say they rely on their children for financial support.
Many of these retirees blame their lack of savings on their low income while working, but 36% admit they have no money because of their own poor saving habits.
The most common reasons for having nothing saved are:
- They mostly lived paycheck to paycheck before retiring (60%)
- They had to pay for unexpected expenses (e.g., medical, legal, etc.) (41%)
- Their income was too low (40%)
- They had poor saving habits (36%)
- They did not realize how much money they would need in retirement (33%)
- They didn’t take the initiative to properly set up their finances for retirement (28%)
- They thought they'd be able to live entirely off of Social Security (24%)
- They didn't think they'd live this long (13%)
Another data point that sticks out: Retired women are 38% more likely than men to say they have nothing saved for retirement.
The Dire State of Retired Women's Finances
Decades of inequalities in the workforce are still hurting women in retirement. Nearly 3 in 10 retired women say they have no money saved for retirement (28%). The median retired woman has $100,000 saved, compared to $217,500 for retired men.
It's no leap to connect women's retirement situation to earning lower pay while working. About 53% of women say their income was not high enough to adequately save for retirement, compared to just 35% of men.
Although the gender pay gap remains stubborn today, it was even worse in the past. A U.K. study found that the pay gap for baby boomer women was 3x higher than it is today for millennial women.
It's no surprise, then, that 61% of retired women say their employer did not help enough with retirement, compared to 48% of men.
Additionally, 56% of women say they retired earlier than planned, meaning they didn't get to accrue the savings they expected to before leaving the workforce. The main reasons women retired earlier than planned involved health issues (37%) and retiring to take care of family (15%).
Many retired women still sacrifice their well-being to look after family and finances in retirement. About 18% say they've skipped medical appointments or treatments to preserve their savings, nearly double the 10% of men who say the same.
At the same time, underestimating the cost of retirement compounded women's savings problem. About 51% of retired women say they did not adequately prepare for retirement, with 58% saying they were surprised by how much money it requires.
Retirement Regrets: 1 in 4 Ashamed of Lack of Planning
Retired men and women alike are looking back and kicking themselves for not taking saving more seriously, with 1 in 4 saying they're ashamed of their lack of retirement planning (25%).
About 57% of retirees say they have regrets about their retirement. The most common regrets include:
- They didn't know how much they needed in savings to retire (56%)
- They should have managed their money better before retiring (54%)
- They waited too long to start saving for retirement (49%)
- They didn't prepare adequately for retirement (47%)
- They didn't understand how their retirement savings would be taxed before they retired (37%)
- They wish they had invested in more high-risk/high-reward assets when they were younger (31%)
- They took Social Security benefits too early (25%)
- They're ashamed of their lack of retirement planning (25%)
- They dipped into their retirement savings before retiring (19%)
Waiting too long to start saving for retirement is a major problem for Americans. About 3 in 5 retirees (59%) didn't start saving for retirement until their 30s or older. About one-third (33%) waited to save until their 40s or older, and 13% never even started saving in the first place.
Retirees Blame Employers for Not Helping Enough
Although Americans accept some blame for their subpar savings, many also point the finger at their former employers. A majority of retirees (55%) say their employer did not do enough to help them save for retirement.
About 45% of retirees say their income was not high enough to save adequately for retirement, with women 54% more likely than men to say so. Experts generally recommend workers save at least 15% of their income for retirement, but 53% of retirees saved less than that benchmark.
Despite the popularity of employer-sponsored retirement programs for salaried workers, such as a 401(k) plan, only about 3 in 5 retirees (59%) participated in such a program. Another 17% decided not to make contributions to those programs, and 25% say their employers didn't offer them.
As a result, 60% of retirees say they wish they better understood retirement savings and investments while working.
Clocking Out Early: 54% of Retirees Left the Workforce Earlier Than Planned
Even the best plans can catch a snag when life gets in the way. That's especially true for retirement — only 39% of retirees say they actually retired when they planned to do so.
A staggering 54% say they retired earlier than planned — with 82% of that group retiring before age 65. The most common reasons for retiring earlier than planned include:
- Health issues (38%)
- They were tired of working (15%)
- They were laid off or fired and chose not to find a new job (14%)
- They had to take care of family (13%)
- Their company offered early retirement plans (e.g., a buyout, good severance, etc.) (12%)
- They had enough saved (11%)
- They had an unexpected financial gain (4%)
About 15% of retirees say they wish they would've retired later — or not at all. The most common reasons why include:
- They claimed Social Security too early (43%)
- They wish they had more discretionary income (41%)
- They didn't save enough for retirement (36%)
- They wish they had more money to pay for necessities (32%)
- They didn't realize how much their standard of living would decline (26%)
- They could have paid off more debt (19%)
That desire to pay off more debt is coming back to bite retirees, many of whom have little opportunity to grow their income.
Retirees Average Over $15,300 in Non-Mortgage Debt
Heading into 2024, about 2 in 3 retirees (63%) say they are in some form of non-mortgage debt. The average retiree owes $15,393 in non-mortgage debt, with credit card debt playing a significant role.
The most common types of debt among retirees are:
- Credit card debt (42%)
- Mortgage debt (26%)
- Auto loan debt (17%)
- Medical debt (13%)
- Personal loans (11%)
Medical debt is a key concern for retired Americans. Individuals 65 and older spend twice as much on health care as working-age adults, according to the Centers for Medicare and Medicaid Services.
Those 13% of retirees in medical debt average a balance of $10,433. Forced to make hard choices, about 15% of retirees say they've avoided medical appointments or treatments to preserve their savings.
Retired women face the brunt of the medical debt burden. They're 60% more likely than male retirees to say they're in medical debt (16% vs. 10%).
1 in 8 Retirees Rely Solely on Social Security
Social Security has been invaluable to retirees. Without the program, an additional 22 million Americans would live below the poverty line.
Among those who collect benefits, about 3 in 5 retirees (60%) are dependent on Social Security to provide at least half of their retirement income, according to Clever's findings.
About 15% of retirees who collect benefits (or 12% of retirees overall) say they receive 100% of their income from Social Security. That group averages just $46,926 in retirement savings — less than the average retired household spends per year ($54,975, according to the Bureau of Labor Statistics).
Underscoring the necessity of Social Security, only 42% of retirees say they receive income from their own retirement funds.
The most common sources of income for retirees are:
- Social Security (82%)
- Personal savings (49%)
- Retirement fund (42%)
- Pension (35%)
- Investments outside retirement fund (excluding stocks) (24%)
- Stocks outside retirement fund (16%)
- Inheritance (9%)
- Government assistance (excluding Social Security) (8%)
Retirees are aware that Social Security could be pared down over time. A CNBC report noted that by 2034, retirees may only receive 77% of their full benefits because of funding issues.
That's unwelcome news for current retirees who need their benefits to last longer than 10 years, and it may explain why 80% of retirees say the government should do more to help people in retirement.
1 in 4 Retirees Can't Afford Future Funeral Costs
When retirees don't have enough saved for end-of-life planning, the burden often falls on surviving family members, complicating an already difficult time. Unfortunately, 23% of retirees say they won't have enough in savings to cover their eventual funeral expenses.
About 45% of retirees say they can't afford to leave behind any inheritance. Some intend to leave an inheritance, only to realize they've underestimated how much money they've spent in retirement. About 54% of retirees say they were surprised by how much it costs to retire.
High costs regularly undermine retirees' savings plans: The average retired household spends $54,975 each year. To address their budget problems, about 70% of retirees say they've cut back on nonessential spending since retiring.
The most common expenses retirees struggle to afford are:
- Groceries (22%)
- Credit card bills (21%)
- Utilities (e.g., electric, water, etc.) (18%)
- Phone/internet/cable bills (15%)
- Medical bills (e.g., prescriptions, treatments, appointments, etc.) (14%)
- Gasoline (14%)
- Insurance bills (13%)
- Taxes (e.g., property taxes, income taxes, etc.) (13%)
- Transportation (e.g., car maintenance, repairs, etc.) (12%)
- Mortgage/rent bills (12%)
- Debt repayment plans (6%)
25% of Retirees Have Considered Rejoining the Workforce
About 34% of retirees say they're spending money faster than expected in retirement, and 28% say they've already spent too much of their savings.
Despite the emotional attachment many have to their homes, 10% of retirees are considering selling their home to cover costs. About 25% of retirees are considering rejoining the workforce, either through part-time, full-time, or consulting/freelance work.
It's distressing to think about retirees selling off valuables or picking up work to get by, but for some, it's a necessity. About 61% of retirees believe they'll need to make their savings last at least another 15 years.
The most common ways retirees plan to make more money include:
- Part-time employment (22%)
- Selling their possessions (18%)
- Moving to a more affordable area (15%)
- Picking up occasional paid tasks (yard work, babysitting, etc.) (12%)
- Selling their home to downsize (10%)
- Consulting/freelancing (4%)
- Full-time employment (4%)
It's worth noting that not all retirees are eager to resolve their financial situation. About 52% prioritize enjoying retirement over preserving their finances.
How Homeownership Impacts Retirement
Homeownership can serve as a barometer for how retirees are faring financially. As an unsettling Harvard report noted, "At the median, older renters have only 2% of the net wealth of older homeowners."
In Clever's survey, 76% of retirees identified as homeowners. Just under half of retired homeowners (46%) say their home is part of their retirement strategy, aside from living in it.
Retirees say:
- Their home is a significant part of their inheritance plans (28%)
- They are taking advantage of tax benefits for homeowners (17%)
- They downsized their home (9%)
- They received a home equity loan (3%)
- They are renting out their home or a portion of their home (2%)
Achieving homeownership has never been more important for working Americans who hope for some semblance of a stable retirement.
Retirement Calculator 2024
Find out roughly how much money you would need in savings to start retirement in 2024, based on the average person's expected retirement income, expenses, length of retirement, and inflation. The estimates may not reflect your specific financial situation.
Methodology
The proprietary data featured in this study comes from an online survey commissioned by Clever Real Estate. One thousand Americans were surveyed Dec. 1-2, 2023. Each respondent answered up to 27 questions related to their financial situation, retirement preparations, and worries surrounding retirement and financial planning.
About Clever
Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions. To date, Clever has helped consumers save more than $160 million on real estate fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.
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Frequently Asked Questions About Retirement Statistics
Is the U.S. in a retirement crisis?
Two-thirds of American retirees say the country is in a retirement crisis. About 40% worry they'll outlive their retirement savings, and 19% say they already have. Learn more about retirement statistics in 2024.
How much does the average retiree have in savings?
The average retiree has about $269,078 saved, less than half the recommended minimum. About half of retirees have less than $145,000 saved, and 12% rely solely on Social Security for income. Learn more about 2024 retirement statistics.
How much does the average retiree spend a year?
The average retired household spends $54,975 a year, according to the latest data from the Bureau of Labor Statistics. Learn more about retirement statistics in the U.S.