Average: $31,644; Median: March 31, 2017Posted by hslu in Economics, Retirement.
Tags: Bureau of Labor Statistics, Retirement
According to a report from the Economic Policy Institute, the mean retirement saving of a family between 32 and 37 years old is $31,644.
Fidelity advices that if you want to have enough to retire at 67, you should have 3 times of you salary saved by 40. By the time you reach 67, you should have 10 times of your salary saved.
In Q4 2016, the median wage for an American worker is $44,158/year (Bureau of Labor Statistics). Since wages vary widely depending on worker’s occupation and age, we’ll use BLS data to calculate the amount you need to stash away for retirement: $132,474.
In other words, our average American worker has managed to accomplish 24% of his retirement goal.
Since average isn’t a good way to tell the entire story, let’s use median to see how American people are doing in their retirement saving department:
The same BLS report put the median amount for families between 32 and 37 is:
Drum roll, please!
Pathetic, isn’t it?
Let see, how much does our average family owe on its 10 (just aguess) credit cards? What’s the balance on its student loan if it is fortunate enough to have a college education?
So, who is going to take care of our average American worker after he or she reaches retirement?
Pension? Very few companies offer it these days.
Social security benefit? Average SS benefit is about $1,341 in 2016. Definitely not enough to live on. Worse, social security may bankrupt in less than 30 years.
Food stamp? Don’t count on it because America has bankrupted for decades.
Looks real bad.