According to retirement statistics from the Statistic Brain Research Institute, the average retirement age today is 63 and the average length of retirement is 18 years. The average savings of a 50-year-old is only $42,797, and the average net worth of a 55- to 64-year-old isn’t much better: $45,447.
However, for a snapshot of what Americans over the age of 50 are buying, consider that they are responsible for 47 percent of auto purchases in the U.S., 80 percent of luxury travel and represent more than half (54 percent) of total consumer demand.
Unfortunately, these numbers belie a potential discrepancy in the pre-retirement savings habits of Americans: About 36 percent of retirees over age 65 rely completely on Social Security benefits. Perhaps one lesson here is to spend less during high-earning years so that you may have more to spend during retirement.1
1. Statistic Brain Research Institute. 2016. “Retirement Statistics.”
Daniel Shub, AIF®, RFC®
Wealth Management Advisor & Founder.