8 Shocking Stats About the Bleak State of Retirement in America

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There may come a day when “retirement” is more a concept than a reality for most Americans. A rising number of seniors are working well past what used to be considered the normal retirement age because they aren’t financially prepared to leave the workforce. The average age of retirement for Americans is 66, according to a Gallup poll. That’s up from age 60 in the 1990s.

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BlackRock CEO Larry Fink made headlines earlier this year when he warned of a looming retirement “crisis” in the U.S. and suggested that the Social Security system and employer-based retirement programs should both be overhauled. In a letter to BlackRock investors, Fink said it’s “crazy” that 65 is considered the normal retirement age when so many Americans are behind on their retirement savings.

Fink joined a growing chorus of American business and political leaders who have raised concerns about the state of retirement in the U.S. — and with good reason. The Hill recently researched the retirement landscape and reported these eight shocking stats about retirement in America.

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The Worrying State of American Retirement Plans

1. About 20% of U.S. households aged 55 to 60 have less than $100,000 in total wealth and no defined benefit retirement plan, according to an analysis of Federal Reserve Board data conducted by The Hill.

2. More than 10% of Americans 65 and older live in poverty as defined by U.S. policymakers.

3. Up to 40% of middle-income workers are at risk of moving down into poverty — or near poverty — in retirement because of an “inefficient retirement system that disproportionately benefits those with high incomes.”

4. Roughly half of Americans aged 55-64 say they could not afford an emergency of more than $2,000, according to Federal Reserve survey data. More than 38% can’t afford an emergency of $1,000.

5. The ever-declining U.S. pension system now ranks only 22nd out of 47 countries and has a grade of C+ on the Melbourne Mercer Global Pension Index. The index gives the U.S. low marks for adequacy of coverage and retirement benefits, financial sustainability and the integrity of regulatory and governance systems.

6. About one-in-five U.S. seniors claim Social Security before full retirement age due to financial pressures and inadequate retirement savings. By not waiting until later to claim, they could be losing up to 30% of their full benefits.

7. A Federal Reserve survey found that about 47% of Americans aged 55-64 don’t think their retirement savings are on track, while 39% of those 65-74 said the same thing.

8. The Hill’s analysis of U.S. Labor Department data found that inflation-adjusted median retirement income only increased by 1% between 2004 and 2022. Over the same time, the inflation-adjusted median expenditures for Americans 65 and older rose by 29%.

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This article originally appeared on GOBankingRates.com: 8 Shocking Stats About the Bleak State of Retirement in America