1. Senior bankruptcy rates are soaring.
The number of seniors who have reached the end of their financial tether is growing by leaps and bounds. A Washington Post report says that “[t]here has been more than a twofold increase in the rate at which older Americans file for bankruptcy protection and almost fivefold jump in the percentage of older persons in the bankruptcy system….”
The report quoted researchers: “In our data, older Americans report they are struggling with increased financial risks, namely inadequate income and unmanageable costs of health care, as they try to deal with reductions to their social safety net.”
10. Social Security benefits could be cut.
According to GoBankingRates, if Congress doesn’t get off its collective kiester and do something, Social Security could exhaust its trust fund by 2035, resulting in the need to cut benefits by 20 percent.
Potential solutions range from raising the ceiling on salaries subject to the Social Security tax to raising (again) the retirement age, but the likelihood of getting the current Congress to agree on anything is practically nil.
The report cites the Social Security Administration, saying that Social Security provides at least half the income for 50 percent of elderly married couples and 71 percent of elderly single people.
9. The average age at retirement is 62.
According to CheatSheet, it’s all very well for young people, in particular, simply to plan on working longer to have enough money for retirement—but the odds of that happening aren’t good.
Says the report, “Gallup finds the average retirement age is 62. This aligns with the Center for Retirement Research’s findings: The average retirement age is about 64 for men and 62 for women.”
Poor health, layoffs and other circumstances beyond a would-be retiree’s control can make working longer an impossibility.
8. Employees are failing to get full employer matching funds.
It doesn’t get you any closer to retirement if your boss is giving away free money and you don’t take it.
CheatSheet also points out a study from Financial Engines says that a quarter of employees aren’t putting away enough money to receive their employer’s 401(k) match.
On average, says CheatSheet, those employees miss out on an extra $1,336 a year, or a little less than an extra $25 a week—and the lower an employee’s salary, the more likely he is to fail to save enough to get the match.
7. Seniors will spend an almighty amount on health care costs.
Remember the title of this article? Be afraid. Be very afraid.
As Money reports, the average couple retiring now at age 65 is going to dump about $280,000 into paying for health care expenses during the course of their retirement.
The figure comes from Fidelity, which estimates each year how much those costs will be—and each year it rises enough to frighten the most sanguine of retirees.
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6. A third of Americans have zero saved for retirement.
Now here’s a thought to make you shiver in your shoes — close to a third of Americans have saved nothing for retirement.
It varies a bit by generation, according to a Motley Fool report, with 39 percent of millennials, 34 percent of GenXers and 32 percent of boomers having an empty retirement savings account.
That is, assuming they have an account at all.
5. Most are afraid they don’t have enough saved.
Considering how many have nothing at all saved, that’s not a surprise.
But as fears go, it’s a pretty strong one, according to a CNBC report that says 78 percent are afraid they haven’t put enough away.
And 66 percent are afraid they’ll outlive whatever they have managed to save. Among boomers, in fact, the average savings balance is less than $25,000.
4. Women are trailing in retirement savings.
As bad as the situation is overall, it’s worse for women, for whom GoBankingRate says there’s a gap in how much they’ve put away.
Women have 26 percent less put away than their male colleagues.
3. Women’s retirement savings have to last longer.
And those smaller retirement savings have to last women for as much as an extra 10 years.
CheatSheet cites JPMorgan research saying that at age 65, men have a 78 percent chance of living another 10 years—while women have an 85 percent chance of it.
That’s 10 more years of expenses to plan for—and on such small balances, that’s a tall order.
2. Americans losing sleep over retirement.
Just in case you aren’t already pulling the covers over your head at all you’ve seen so far, Ramsey Solutions research says that 56 percent of Americans are losing sleep when they think about retirement.
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1. Senior bankruptcy rates are soaring.
The number of seniors who have reached the end of their financial tether is growing by leaps and bounds. A Washington Post report says that “[t]here has been more than a twofold increase in the rate at which older Americans file for bankruptcy protection and almost fivefold jump in the percentage of older persons in the bankruptcy system….”
The report quoted researchers: “In our data, older Americans report they are struggling with increased financial risks, namely inadequate income and unmanageable costs of health care, as they try to deal with reductions to their social safety net.”
10. Social Security benefits could be cut.
According to GoBankingRates, if Congress doesn’t get off its collective kiester and do something, Social Security could exhaust its trust fund by 2035, resulting in the need to cut benefits by 20 percent.
Potential solutions range from raising the ceiling on salaries subject to the Social Security tax to raising (again) the retirement age, but the likelihood of getting the current Congress to agree on anything is practically nil.
The report cites the Social Security Administration, saying that Social Security provides at least half the income for 50 percent of elderly married couples and 71 percent of elderly single people.
9. The average age at retirement is 62.
According to CheatSheet, it’s all very well for young people, in particular, simply to plan on working longer to have enough money for retirement—but the odds of that happening aren’t good.
Says the report, “Gallup finds the average retirement age is 62. This aligns with the Center for Retirement Research’s findings: The average retirement age is about 64 for men and 62 for women.”
Poor health, layoffs and other circumstances beyond a would-be retiree’s control can make working longer an impossibility.
8. Employees are failing to get full employer matching funds.
It doesn’t get you any closer to retirement if your boss is giving away free money and you don’t take it.
CheatSheet also points out a study from Financial Engines says that a quarter of employees aren’t putting away enough money to receive their employer’s 401(k) match.
On average, says CheatSheet, those employees miss out on an extra $1,336 a year, or a little less than an extra $25 a week—and the lower an employee’s salary, the more likely he is to fail to save enough to get the match.
7. Seniors will spend an almighty amount on health care costs.
Remember the title of this article? Be afraid. Be very afraid.
As Money reports, the average couple retiring now at age 65 is going to dump about $280,000 into paying for health care expenses during the course of their retirement.
The figure comes from Fidelity, which estimates each year how much those costs will be—and each year it rises enough to frighten the most sanguine of retirees.
Advertisement
6. A third of Americans have zero saved for retirement.
Now here’s a thought to make you shiver in your shoes — close to a third of Americans have saved nothing for retirement.
It varies a bit by generation, according to a Motley Fool report, with 39 percent of millennials, 34 percent of GenXers and 32 percent of boomers having an empty retirement savings account.
That is, assuming they have an account at all.
5. Most are afraid they don’t have enough saved.
Considering how many have nothing at all saved, that’s not a surprise.
But as fears go, it’s a pretty strong one, according to a CNBC report that says 78 percent are afraid they haven’t put enough away.
And 66 percent are afraid they’ll outlive whatever they have managed to save. Among boomers, in fact, the average savings balance is less than $25,000.
4. Women are trailing in retirement savings.
As bad as the situation is overall, it’s worse for women, for whom GoBankingRate says there’s a gap in how much they’ve put away.
Women have 26 percent less put away than their male colleagues.
3. Women’s retirement savings have to last longer.
And those smaller retirement savings have to last women for as much as an extra 10 years.
CheatSheet cites JPMorgan research saying that at age 65, men have a 78 percent chance of living another 10 years—while women have an 85 percent chance of it.
That’s 10 more years of expenses to plan for—and on such small balances, that’s a tall order.
2. Americans losing sleep over retirement.
Just in case you aren’t already pulling the covers over your head at all you’ve seen so far, Ramsey Solutions research says that 56 percent of Americans are losing sleep when they think about retirement.
Advertisement
1. Senior bankruptcy rates are soaring.
The number of seniors who have reached the end of their financial tether is growing by leaps and bounds. A Washington Post report says that “[t]here has been more than a twofold increase in the rate at which older Americans file for bankruptcy protection and almost fivefold jump in the percentage of older persons in the bankruptcy system….”
The report quoted researchers: “In our data, older Americans report they are struggling with increased financial risks, namely inadequate income and unmanageable costs of health care, as they try to deal with reductions to their social safety net.”
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
