Eight Startling Retirement Facts
Eight Startling Retirement Facts, For the next 20 years, roughly 10,000 baby boomers will be turning 65 every day. For the next 20 years, about 10,000 baby boomers will turn 65 each day. Some have been preparing diligently for their retirement by building savings, and are looking forward to having the freedom to do what they want to do when they want to do it. Other boomers may not have begun to contemplate how retired life will look because they are caught up in living for today. As this massive generation crosses into what has historically been retirement age, they will face many new realities, and they may not all be pretty.
The recent economy has not been cooperative for investors attempting to build a nest egg. Those nearing retirement age have the most to lose if the market declines and limited years to continue contributing to retirement accounts. At the same time, the average life expectancy continues to rise, which is even more years of retirement baby boomers need to save for. Here are eight startling retirement facts to ponder:
1. One in six older Americans lives below the poverty line, which is $22,350 for a family of four, according to the U.S. Department of Health and Human Services. That amount is not much for a single person, let alone a family of four.
2. The current ratio of working age citizens between 15 and 64 to those over age 65 is 5:1. By 2050 this ratio will drop to 3:1. This means we will have a smaller proportion of working people supporting increasing numbers of retirees.
3. The ranks of senior citizens are growing rapidly. There are now around 40 million senior citizens, but that number is expected to increase to 89 million by 2050. The aging population will impact everything from housing and health care to travel and employment.
4. The cost of assisted living facilities has risen to a national median rate of $3,300 per month, which works out to be $39,600 per year. The highest median rate is in Alaska at $6,813 per month.