We’ve reviewed many retirement surveys from numerous organizations, and regrettably, the common theme is a significant lack of retirement readiness. The chart above would suggest to us that only the top 10% of American households even stand a chance of having a decent retirement. Notice, we didn’t say dignified.
As we recently reported, the average Senior citizen spends roughly $46,000 per annum in retirement. Since Social Security’s average payout is only about $16,000, this leaves a significant gap that must be closed through personal savings or a defined benefit payout. Unfortunately, most private sector workers do not and will not have access to a DB plan.
Furthermore, it has been reported that one could expect to pay roughly $275,000 in out-of-pocket healthcare expenses during their Senior years. Only the top 10% have accumulated assets in excess of $200,000.
The folks in Washington DC better get serious about addressing this unfolding crisis before we have a significant percentage of our once very productive Senior citizens falling onto the welfare ranks.