Today's Hack

We are breaking down some retirement statistics on today’s episode. Are these numbers encouraging or discouraging?

Let’s get into some retirement statistics and break down whether they are disturbing or encouraging for pre-retirees and retirees. Some people think math doesn’t lie, but can these numbers be misleading?

Overall, women have a smaller retirement savings amount than men.

This one is definitely disturbing. While men average around $118,000, women only save on average $57,000. Why is this the case? Women tend to take a step out of the workforce to take care of the children and some choose to stay out for an extended period of time.

They’re less likely to be putting money away during this time. We think this gap will start to close in future generations. Working with your partner in these cases to help save for each other can be a great way to alleviate this gap.

Experts are guessing you need $1,040,000 million to retire comfortably – a 10% increase from the prior year.

Looking at long-term market expectations this is probably realistic. You may need more or you may need less depending on your lifestyle but this is where planning becomes even more important. With equity and inflation possibly going higher, what’s your long-term picture? Don’t get wrapped up in the number, focus on the increase in savings needed.

55% of workers are planning to work into retirement.

If 55% of workers had to work in retirement, we’d be worried. But most of these people are probably working for a little extra spending cash or as a social outlet. Working in retirement is common to keep boredom at bay. We see this as a positive for most people!

25% of Americans increased their savings during the COVID-19 pandemic.

People weren’t out spending as much and people were forced to save more. We might see some of this unwind with inflation costs, especially with travel. There are a lot of factors impacting our wallets right now when it comes to supply and demand.

Almost 70 million retired workers received Social Security last year.

This is up 45 million from 2019. The pandemic and the Great Resignation played a big role in this increase. This might seem like a big pull on the system, but in the long term this will level out. As people take Social Security earlier, their payments are smaller – meaning there’s enough for the future too.

[1:29] Women have less saved than men

[7:00] You need $1.04 million to retire

[9:29 ] 55% of workers plan to continue to work

[10:47] 25% of Americans increased their savings

[13:46] 70 million people are taking Social Security

A Quotable Moment:

“At the end of the day, what it is it? It’s a guaranteed government benefit. There’s a lot of pros to that benefit. Don’t make the wrong decision with Social Security… making a decision on something you heard.”

-Phil Putney

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