Two-Thirds of Retirees Say US in ‘Retirement Crisis’ — Do Facts Support the Claim?

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It’s normal for people to worry about whether they are financially prepared for retirement, but it’s another thing when they start referring to retirement as a “crisis.” That’s how a large chunk of Americans view retirement, according to a new survey.

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The survey of 1,000 Americans, conducted by Clever Real Estate in December 2023, found that about two-thirds (66%) of retired Americans say the U.S. is in a “retirement crisis.” Much of the worry is tied to rising costs and outstanding debt that threatens baby boomers‘ nest eggs, according to a Jan. 22 press release.

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There’s no question that many Americans enter retirement unprepared to meet the financial challenges of their golden years. A 2023 survey from GOBankingRates found that most Americans have less than $50,000 saved for retirement. More than one-third (36%), including 31% of those ages 65 and older, have less than $10,000 saved. An additional 27% of Americans have between $10,000 and $50,000.

Whether those kinds of numbers represent a crisis depends on many different factors, including your age, location and lifestyle.

But the Clever Real Estate survey did reveal some troubling stats that could indicate that the term crisis is not too far off base. About 40% of respondents said they worry they will outlive their retirement savings — and 19% have already done so. Nearly one-quarter (23%) said they won’t have enough saved to cover their eventual funeral expenses.

In addition to a lack of savings, one of the other big problems is debt. The Clever Real Estate survey found that retirees average about $15,393 in non-mortgage debt. Another worry is that about one in eight retirees rely entirely on Social Security for income.

Here are some other highlights from the survey:

• The median retiree has $142,500 in savings, or about four times less than the recommended minimum for starting retirement ($572,000).  
• 46% of retirees have no plan in place if their retirement savings run out.  
• 25% of retirees have nothing saved for retirement, and 15% rely on their children for financial support. 

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. More than one-quarter (28%) of retired women have nothing saved, compared to 20% of men.

Meanwhile, the vast majority of retirees (80%) say the government should do more to help — an especially big worry because of the looming depletion of Social Security’s Old Age and Survivors Insurance Trust Fund. The OASI fund is expected to run out of money in about a decade, leaving Social Security solely dependent on payroll taxes for funding. Those taxes currently fund about 77% of benefits.

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This article originally appeared on GOBankingRates.com: Two-Thirds of Retirees Say US in ‘Retirement Crisis’ — Do Facts Support the Claim?