Whether there’s a retirement savings crisis in this country is open to debate, but survey findings such as this don’t instill confidence. Yes, Social Security is a factor, but Sagewell Financial’s Senior Certainty Index reports that 27% of seniors overall have less than $10k saved for retirement, and the number rises to nearly one-third of senior women specifically.
“It is disheartening to learn that more than a quarter of Baby Boomers have less than $10,000 saved for retirement—that number jumps to 32% among women.”
The retirement planning fintech added that nearly three-quarters of all seniors were concerned that the war in Ukraine could impact their retirement planning and savings, while only 45% felt the same way about the pandemic. More than seven out of 10 are planning to or willing to work in retirement and 29% are using or interested in crypto as an investment.
“It is disheartening to learn that more than a quarter of Baby Boomers have less than $10,000 saved for retirement—that number jumps to 32% among women,” Sam Zimmerman, Sagewell co-founder and CEO, said in a statement. “Fifty-Seven percent Nearly 60% of seniors expect to live on less than $3,000 a month in retirement. We are at a crisis point now, and it will worsen unless we take drastic steps to improve the way our seniors plan for and live in retirement.”
Specific findings
Seniors plan to retire differently than previous generations
- 39% plan to retire after 65
- 69% plan to or would like to age in place
- 44% said their confidence about sticking to their retirement plan has changed over the past 12 months.
- Only 23% were confident they are prepared if Social Security runs out
Paying for retirement
- 27% have less than $10,000 saved for retirement, and 40% have less than $50,000
- 57% are concerned that they will run out of money
- 82% do not feel confident about their access to cash or liquidity in retirement
- 73% said they welcome some income smoothing (receiving consistent income in the form of 1 or 2 consolidated monthly checks.)
Gender inequity
- 42% of women expect to receive less than $3,000 monthly in retirement (27% of men)
- 15% expect less than $1,000 (6% of men)
- 32% have less than $10,000 saved for retirement (18% of men)
- 47% have less than $50,000 saved for retirement (30% of men)
- 15% have more than $500,0000 saved for retirement (28% of men)
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
