ST. LOUIS–Credit unions looking to help their members in the long term will want to pay attention to a new study that has found the average American has about 10% less saved for retirement now than they had at the beginning of 2022.
“Faced with rising prices and stock market setbacks, the average retiree has $21,000 less in savings than they had at the start of 2022 — dropping from $191,659 to $170,726,” said Clever Real Estate in releasing the results of its study. “What's more, the share of retirees with nothing saved jumped from 30% to 37%.
The consequences are clear. The latest Census data puts the share of U.S. seniors living in poverty at a 20-year high, and the economic turmoil of 2022 threatens to raise the number even higher.”
Feeling the Ramifications
According to Clever, seniors are already feeling the ramifications, with just one-in-eight American retirees (12%) having at least the recommended $555,000 in savings, according to the new Clever Real Estate survey of 1,000 retirees.
The company said the COVID-19 pandemic led some to retire early because of health problems or concerns, and many retirees have come to regret that decision, with 48% saying they believe they'll outlive their current savings.
“Inflation has forced many retirees to make drastic sacrifices to preserve their savings, with 18% saying they've skipped meals and 24% saying they've skipped medical treatments to make their money last longer,” Clever reported.
Other Findings
Among some of the other findings:
- 37% of retirees say they have nothing saved for retirement.
- 57% were surprised by how much it actually costs to retire.
- 60% of retirees say their former employers did not do enough to help them prepare for retirement.
- 83% of retirees say inflation has impacted their retirement savings.
- 44% of retirees struggle to afford basic living expenses.
- 65% stopped working sooner than they planned, with half of that group citing health concerns (50%).
- 71% of retirees have non-mortgage debt, with an average balance of $19,888.
Far greater detail on the findings can be found here.
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