Episode 173: Recent Financial Statistics
Today’s Prep:
What’s the average amount some have saved? How many people plan to work in retirement? We talk through recent financial statistics to give you an idea of what matters and what isn’t a great marker of financial success.
Equipping Points:
Sometimes it’s nice to know if you’re ahead or behind the curve. We cover six interesting financial statistics and see what David has to say about them and what it means for your financial plan.
To start out, on average, women have smaller overall retirement savings amounts. David thinks this statistic is a silly one to pay attention to. There’s no information about the average age of the women in this statistic. But further, it doesn’t show the whole story. For example, some women spend time away from their careers taking care of their children at home, like David’s wife did. Despite how much money is in her IRA compared to his 401(k), their retirement savings is shared between both of them. One way to ensure you achieve the retirement savings you want is by saving early and systematically.
Experts estimate you’ll need $1.04 million to have a comfortable retirement. But before you place too much weight on that number, step back and think about it. What is a “comfortable” retirement according to the experts? For some people, this dollar amount is more than they need and for others, this is nowhere near what some would need to maintain their lifestyle. Make sure you have a plan that is calculated toward making your retirement as comfortable as you want it to be based on the lifestyle you’ve been living.
Are you one of the 55 percent of American workers planning to continue working in retirement? Many people choose to work into retirement. Having your eye on a second career for no or little money can be a great plan. But make sure your plan makes working during retirement optional so you can opt-out of working in retirement as needed.
A quarter of Americans increased their savings as a result of the pandemic. David finds this statistic a bit disappointing. Another impact that may have to do with the pandemic is that the number of retired workers receiving Social Security benefits was almost 70 million in 2021, compared to 45 million just two years earlier. Be prepared for some changes to Social Security in the future.
Finally, retirees spend an average of $6,668 on healthcare in 2020. When making your financial plan, make sure to put a higher inflation factor on healthcare. That continues to get more expensive and the longer you live, the longer you’ll use it.
If you ever want your question spotlighted on the show or to ask David something about your retirement, email him at [email protected]
Listen to the entire episode or skip ahead using the timestamps below to skip to a particular question.
0:57 -
Women have smaller overall retirement savings amounts.
5:25 - Experts estimate you’ll need $1.04 million to have a comfortable retirement.
8:44 - 55 percent of American workers plan to continue working in retirement.
10:27 - 25 percent of Americans increased savings as a result of the pandemic.
12:20 - The number of retired workers receiving Social Security benefits was almost 70 million in 2021.
17:07 - Retirees spent an average of $6,668 on healthcare in 2020.
Today’s Takeaway:
“Don’t forget to pay yourself, whether you’re in your 30s, 40s, or your 50s because those are the monies that are going to be paying you back in your late 60s, 70s, and 80s."
– David Dickens
KC Financial Advisors Blog


