Everyone knows that retirement is full of uncertainty. There are a lot of unknowns and so the majority plan for minimal needs, living off savings…even though you’re never really sure what will happen when you retire. Everyone should read these 40 scary facts about retirement before they make any decisions on their money or lifestyle.

The “40 sad facts about retirement” are a list of scary facts that you should know before you retire.

In the past, retiring required setting up a specific amount of personal savings, creating a retirement fund (sometimes with an employer’s assistance), and then settling into your golden years of travel and leisure. However, bigger economic trends and the COVID-19 pandemic’s disruptions have sped up the development of retirement funds. Retirement nowadays is being entered into with little safety net.

The health of retirement funds is discussed in a new report by Clever Real Estate, which also exposes some unsettling patterns. Today’s retirees choose to quit their jobs sooner rather than working longer to save more money, and many do so with little to no savings to see them through their golden years. They have greater debt than prior retirees, including credit card, medical, and even some educational debt. Many still have unpaid mortgages or are renting.

In order to lower their debt in retirement, empty nesters may need to downsize their residences. Finding the correct real estate agent may make it easier to navigate the quickly changing market of today. Retirees may negotiate with a low-commission real estate broker to avoid paying the full 3 percent fee rate in order to maximize their earnings from the sale of their house. The money saved might then be set aside for an emergency or utilized to pay off further debt.

However, many retirees have tension and concern about the future.

 

1. The Great Retirement, Not the Great Resignation

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Since the start of the epidemic, a record number of staff have left their positions. However, millions of employees who left their jobs in the last two years didn’t hunt for new employment. The couple was leaving.

Gpointstudio/Istockphoto is the source of the image.

2. On average, retirees have only saved one-third of the amount that is advised.

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$514,800 in retirement savings is advised by experts. Over one-third of the suggested amount, or nearly $191,600, has been saved by the typical retiree. Two-thirds of retirees feel unprepared for retirement as a consequence.

Source of the image: DepositPhotos.com.

3. Almost a Third of Retirees Have No Retirement Savings

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Although the typical retiree has saved significantly less than the advised amount, 30% of retirees have made no retirement savings at all.

Image credit: istockphoto / CREATISTA.

4. The Pandemic Was Very Hard on Retirees

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The pandemic-related economic slowdown had an effect on a wide range of individuals, but pensioners were particularly hard-hit. 48 percent of pensioners said that the recession had a negative impact on their finances. About half (49%) of respondents who indicated the epidemic had an effect on their finances stated they haven’t yet recovered.

Lakshmiprasad S/iStock is the source of the image.

5. Debt when Retirees Start Their Retirement

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More than seventy percent (76%) of retirees are still in debt.

RossHelen/Istockphoto provided the image.

6. Among retirees, credit card debt is most prevalent

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Approximately 67 percent of retirees have some credit card debt when they first start their retirement. Mortgage debt (37%) was the second most typical sort of debt, then auto payments (32%) and medical debt (32%) (22 percent ).

Kitzcorner and Istockphoto, thanks.

7. Almost 1 in 10 Retirees Still Make Student Loan Payments

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Unexpectedly, 8% of retirees are still making payments on their school loans. Some retirees could take out loans to further their education and change careers, while others would do so on their children’s behalf. According to AARP, a fifth of Americans over 50 are still making payments on student loans that were not repaid by the student borrower.

Photograph courtesy of fizkes/istockphoto.

8. During the Pandemic, Retirees Have Reduced Their Debt.

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The analysis revealed that average retiree debt decreased from $19,200 in 2020 to $17,136 in 2021, so it’s not all bad news.

Source of the image: DepositPhotos.com.

The Golden Age 9. Many retirees don’t feel so golden anymore

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According to the report, 24% of retirees are under stress as a result of their retirement choice.

Drazen Zigic of istockphoto provided the photo.

10. Retirees seldom accept financial assistance from their kids.

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Only 2% of retirees claim that their children’s financial assistance was a source of retirement income.

Source of the image: DepositPhotos.com.

11. Social Security is the main source of income for the majority of retirees.

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According to the report, 79 percent of retirees rely on their Social Security benefits. For the typical retiree, it’s not enough to live on.

Image source: istockphoto/Zinkevych.

12. Less Than Half of the Average Retiree’s Budget is Covered by Social Security

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The typical monthly Social Security benefit is $1,555, which represents just around 40% of the $3,843 monthly budget for a retiree. That is a significant shortage for pensioners who depend significantly on Social Security.

Source of the image: DepositPhotos.com.

13. More over half of retirees fear outliving their savings

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According to the report, 51% of retirees think they will outlive their funds, which would force them to make difficult choices later in life.

Source of the image: DepositPhotos.com.

14. Retirees Depend More on Personal Savings Than on Pensions or Retirement Funds

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The second most frequent source of income for retirees after Social Security is personal savings (38 percent), followed by retirement accounts like a 401(k) or Roth IRA (35 percent), an employer-sponsored pension plan (29 percent), and assets like stocks and real estate (23 percent ).

Source of the image: shapecharge.

15. Almost 10 percent of Retirees Return to the Workforce

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According to the survey, 7% of retirees work at least part-time, and 3% own a small company or consulting firm.

Photo courtesy of Deposit Photos.

16. The main motivation for returning to work is financial.

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The survey found that 73 percent of retirees who go back to work do so because they need the money to pay for their basic living expenditures or because they wish to have more money for themselves.

Photo courtesy of Depositphotos.

17. Going back to the office isn’t always about the money

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33 percent of retirees who go back to work do so because they miss the social connection or need a hobby. More than a quarter (27%) like working despite not needing the additional money.

Picture source: istockphoto/fizkes.

18. The majority of retirees attribute their financial situation on their former employers.

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54 percent of retirees claim their companies didn’t make adequate retirement contributions. This can imply that prior companies didn’t match 401(k) payments or provide any kind of retirement plan.

Aleksandar Nakic provided the photo.

19. Only a third of retirees had employer-sponsored retirement plans, according to a study

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31% of retirees claim their previous companies didn’t provide any kind of pension or 401(k) (k). For such employees, Social Security and personal savings account for the majority of their retirement money.

Source of the image: DepositPhotos.com.

Retirees Failed to Save Enough to Be Eligible for Matching Contributions (20)

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Employees contribute a predetermined amount to a traditional 401(k) plan out of their paychecks, and employers may agree to match a portion of that contribution — often up to 3-6 percent of employees’ salary.

The only snag is that workers must make a certain level of contributions in order to be eligible for the corporate match. Some people don’t. According to a recent poll, 13% of workers who make contributions to retirement funds don’t do it enough to qualify for an employer match. The employer match is sometimes referred to as “free money” by financial experts, and skipping out on it might be expensive as contributions increase over time.

Source of the image: DepositPhotos.com.

21. Almost Half of Retirees Experience Bill-Paying Issues

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It may not be unexpected that 43 percent of pensioners struggle to pay their expenses given their inadequate savings, the negative effects of the epidemic, and growing expenditures. The fact that 50% of seniors have trouble paying their credit card bills suggests that they rely on credit cards to make up the difference between their savings and Social Security benefits.

Image courtesy of Istockphoto and Rawpixel.

Medical Costs Are an Economic Burden for Retirees 22

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The medical expense is the second most often mentioned item that retirees struggle to pay. Given that Medicare covers most seniors, this is a little unexpected. This may indicate that many early retirees who have not yet reached Medicare eligibility are accruing medical debt or that Medicare coverage is insufficient for those who are covered by insurance.

Photo courtesy of Deposit Photos.

23. For Retirees, Groceries Are a Big Expense

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Retirees, who often live on fixed incomes, have been disproportionately affected by rising food prices. 33 percent of seniors struggle to pay for food.

Ljupco/Istockphoto is the source of the image.

24. Many retirees are paying rent or their mortgage off.

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Retirement residents don’t usually reside in paid-off homes. A quarter (23%) of seniors who report having trouble paying their expenses explicitly highlighted their mortgage or rent.

Image credit: iStockPhoto/IndySystem.

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According to the report, 67 percent of retirees wished they had saved more money. 52 percent of respondents stated they wished they had had a better financial education.

MonkeyBusinessImages/IstockPhoto is the source of the picture.

26. Many retirees regret delaying starting their savings efforts.

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A lack of financial awareness may be the reason why almost half of retirees (45%) feel they started saving too late. Lack of understanding of the power of interest and investment growth may prevent workers from taking advantage of saving during those important early years.

Istockphoto provided the image.

27. A third of retirees felt their investments were made too safely.

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It’s interesting to note that 33% of retirees wish they had made more high-risk, high-reward investments when they were younger. The pleasure of banked riches is outweighed by the sorrow of lost opportunities.

William Potter/istockphoto is the source of the image.

28. The U.S. falls short on financial literacy.

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Retirement worries about a lack of financial knowledge are confirmed by the fact that the United States ranks 14th in the world for financial literacy.

ISTOCKPHOTO / SARINYAPINNGAM, source of image.

29. More than 25% of retirees regret their decision to retire at that time.

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27 percent of retired people polled said they would have continued to work and save if they had realized how much their quality of life would decline after retirement.

Source of the image: DepositPhotos.com.

30. After retirement, the average retiree’s income declines

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The typical retiree sees their income decline by around 50%. The typical retired family earns little over $44,000 annually, compared to the typical wage-earning home’s $88,000.

Source: pinkomelet through iStock.

31. More than half of retirees regret not postponing their retirement.

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Most regretful retirees (56%) wish they had continued to work and save, with 40% claiming they hadn’t saved enough. 28 percent of people regret using their retirement money before they were ready to retire.

Dragana991/Istockphoto is the source of the image.

32. Even financially stable retirees regret their decision to retire at that time.

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Surprisingly, 40% of pensioners claim that the only reason they regret their decision to retire is boredom.

Source of the image: DepositPhotos.com.

33. Retirees’ Concern for Comfort

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27 percent of retirees were taken aback by how much their level of life had altered after they retired. 36 percent of people feel guilty about not having enough money on hand.

Picture Source: Halfpoint through iStock.

34. Retirees Are Reducing Their Luxury Spending

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According to the poll, retirees spend 50% less on vacation and eating out (49 percent ).

Source of the image: DepositPhotos.com.

35. Retirement Health Care Costs Are Higher

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In retirement, more than a quarter of respondents (27%) spend more on medical expenses and health care.

Source of the image: DepositPhotos.com.

36. A lot of employees retired earlier than expected.

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64 percent of retirees who left the employment during the pandemic said they did so sooner than expected, which may be a contributing factor to some of the financial difficulties they are now facing.

Dragana991/Istockphoto is the source of the image.

37. Half of workers’ retirement decisions were influenced by the pandemic

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If not for the epidemic, over half of respondents (48%) likely wouldn’t have retired.

2K Studio/Istockphoto is the source of the image.

38. Health Issues Are the Leading Cause of Employee Retirement

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53 percent of retirees said that their early retirement was due to health issues. They were laid off, which was the second most often given explanation. Many early retirees didn’t make their choice to do so fully voluntarily.

Photograph courtesy of fizkes/istockphoto.

39. The typical retiree has substantial medical debt.

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Clever estimates that the typical retiree owes $11,114 in medical debt. Over time, that number is probably going to rise. According to experts, the typical retired couple would need $300,000 in savings merely to meet medical costs.

Photo courtesy of Deposit Photos.

40. There are fewer early retirements due to health issues.

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The percentage of people quitting their jobs due to health issues dropped by 12% from 2020 to 2021, indicating that the retirement boom brought on by the pandemic is already subsiding.

Related: 

The original version of this post was published on ListWithClever.com, and MediaFeed.org syndicated it.

Source of the image: DepositPhotos.com.

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AlertMe

The “can i retire at 60 with 500k” is a question that many people ask. The answer to the question, is yes, but you will need to set aside money for living expenses in order to get there.

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