Many Retirees Rely Solely on Social Security Without Additional Savings
According to an analysis of the Federal Reserve's 2022 Survey of Consumer Finances, about one-third (30%) of U.S. households led by someone aged 65 or older have no retirement savings or pension. This amounts to approximately 11.6 million households. Among these, nearly half lack money in traditional retirement accounts like IRAs and 401(k)s. Single retirees are particularly vulnerable; about two-thirds (69% of single women and 65% of single men) have no such savings compared with just 37% for married or partnered individuals. The number of older households with little to no retirement savings has grown significantly over the past quarter-century, rising from 4.3 million in 1998 to 7.3 million by 2022—a 71% increase—due largely to population growth among retirees. Additionally, about 14% of older households have less than $10,000 in financial assets and no home equity, making them heavily reliant on Social Security or other limited income sources. The situation is not improving for younger generations either; median retirement savings among working adults aged 21 to 64 were just $955 as of 2022. Experts warn that these trends highlight the fragility and underpreparedness of many Americans' retirement plans.
Topics: financial assets household wealth retirement Social Security