We all naturally wonder how we stack up against each other – are we the average height, weight, etc? Are we the average age to get married? When it comes to retirement, there are many questions to ponder – if you have the average amount of savings, or if you’ll retire at the average age for example.
Retirement Savings Averages
If you’d like to know where you stack up against the average for retirement savings, for those 65 and older, the average savings balance is $407,581. Only 17.3% of those older than 65 have a balance of more then$700,000 with just 11.6% of that population having a balance of over a million. The highest balances are typically for those in the age range of 55-64.
Where do you stack up, and how do you feel about that? If you’re feeling like you’re average, then that’s probably a good thing. If you’re feeling behind the eight ball think about a few things – the first being how much you’ll need to live off of in retirement, which is likely around $20,000 a year pre-tax for the “average” person. Your needs may vary though, so take that into account. If you need to play catch up, it may be worth talking to a financial advisor to see how to best plan ahead for that situation.
Average Social Security Benefits
With those average retirement savings, it is not surprising that many retirees rely on Social Security to fund their retirement. Most retirees take their benefit, 90% by age 65 and the average benefit is $1825 per month.
Social Security is calculated by taking one’s higher 40 quarters of earnings. If both individuals in a couple worked you can likely expect over $40,000 of income from Social Security, and those figures may even double depending on your income level while working.
Average Health Expenses In Retirement
Retirees over age 65 spend on average $7,030 per year on health expenses according to the Wall Street Journal. That’s a figure that is likely to rise as you age. If you’re married and retired, you may be looking at $14,000 or more per year on your health alone – and that’s at the low end estimate. This is certainly something you’ll need to factor in as you plan for your retirement.
An Average Day In Retirement
Additional interesting stats that can show you how you stack up in retirement are statistics on how the average retiree spends their day. They spend, on average, 9.01 hours sleeping, 6.24 hours of relaxation or leisure, 4.5 hours of tv watching, 1/86 hours on eating/drinking/grooming, and the rest of the day on miscellaneous housework, caregiving, exercise and work. It’s worth noting these averages as you plan out retirement, so that you can plan how you’d like to spend your own time in retirement.