Regardless of how you approach retirement, there are some things about it that might surprise you.
Postponing Retirement? From the chart above, 26% of workers now intend to keep working until age 70 and beyond — the highest percentage in 20 years. And 7% don’t intend to retire at all. Chart Source: Employee Benefit Research Institute, 2013 Retirement Confidence Survey.
By 2025, the U.S. Census Bureau expects people age 65+ to account for 25% of the population.
Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you.
1. Many consider the standard retirement age to be 65. One of the key influences in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.1
2. Every day for the next 13 years, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.2
3. In 2010, people aged 65 and older accounted for 13% of the population in the U.S. By 2025, they are expected to make up 18% of the population.3
4. Ernest Ackerman was the first person to receive a Social Security benefit. In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢. Ackerman worked one day under Social Security. He earned $5 for the day and paid a nickel in payroll taxes. His lump-sum payout was equal to 3.5% of his wages.4
5. In 2001, people aged 65 and older owned 31% of the U.S.’s financial assets. By 2040, it is estimated they will hold 44% of the country’s financial assets.5
6. Adults 65 years and older consume one-third of all over-the-counter medicines sold in the U.S.6
7. In 2010, nearly one-third (32%) of those 65 and older depended on Social Security for 80% or more of their income. The average monthly Social Security benefit at the beginning of 2012 was about $1,230.7
8. Centenarians — those over age 100 — are the fastest-growing demographic group in the U.S. Between 2000 and 2010, this group roughly doubled in size. In the 2010 census, nearly 83% of centenarians were women.8
9. Seniors watch more television—live, on the internet, and on mobile devices—than any other age group, even teenagers. In the first quarter of 2013, the 65-and-older age group averaged over 275 hours of television per month, compared with 120 hours for kids aged 12 to 17 years.9
Fast Fact: Not Much: Excluding the value of primary residences and defined benefits plans, 46% of workers stated that they had less than $10,000 in total savings and investments. Source: Employee Benefit Research Institute, 2013 Retirement Confidence Survey
Tip: 15% of middle-aged adults are providing financial support to both an aging parent and a child. Source: Pew Research, 2013
These stats and trends point to one conclusion: The 65-and-older age group is expected to become larger and have more influence in the future. Have you made arrangements for health care? Are you comfortable with your investment decisions? If you are unsure about your decisions, maybe it’s time to develop a solid strategy for the future.
1,4.Social Security Administration, 2013
2. U.S. Census Bureau, 2012
3,8. U.S. Census Bureau, 2013
5.Federal Reserve Bank of Kansas City, 2013 (landmark study conducted in 2004)
6.Consumer Healthcare Products Association, 2010
7.Employee Benefit Research Institute, 2013 Retirement Confidence Survey
9.The Nielsen Company, 2013
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2013 FMG Suite.
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