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Millions Retire With No Savings At All
5 Aug
Summary
- 11.6 million older households lack retirement accounts or pensions.
- Median financial holdings for these households are only $2,600.
- The number of households with little savings rose 71% since 1998.
Millions of older Americans are entering retirement with little to no financial cushion. As of the latest Federal Reserve data, about 11.6 million households headed by someone 65 or older report having neither a retirement account nor a pension. The typical financial assets for these households stand at a meager $2,600.
The situation reveals a stark reality for many, as roughly 53% of older households have no money in IRAs or 401(k)s. While some may have pensions or other savings, a considerable group of 7.3 million households, constituting about 20% of all older households, also possess less than $10,000 in financial assets, relying heavily on Social Security and wages.
This trend of insufficient savings is not new but has intensified. The percentage of older households with no retirement account, pension, and less than $10,000 in assets has remained relatively stable. However, the sheer number of households in this precarious financial state has increased by 71% since 1998, escalating from 4.3 million to 7.3 million.
