“Although the average American household has saved roughly $175,000 in various types of savings accounts, only the top 10 percent to 20 percent of earners will likely have savings levels approaching or exceeding that amount with 29 percent of households have less than $1,000 in savings,” MagnifyMoney reports. According to http://www.magnifymoney.com, the top 1% of households (as measured by income) have an average of $2,517,270 in these various saving accounts. The bottom 20% have an average of $8,790. with roughly 83% of savings are in located in retirement accounts like IRAs and workplace-sponsored retirement savings plans like 401(k)s.
According to wallethacks.com, if you have a net worth of $194,226 when you hit 65 and expect to spend only 4% a year, that gives you $7,769 a year or less than $650 a month. Even with the average monthly Social Security benefit at $1341 (2016 data), that’s still less than $2,000 a month in retirement income. That’s the median. Half get more, half get less. As you can see in the below exhibit, it is important to own your own home:
According to a recent survey by GObankrates, the 2018 Retirement Savings survey found that 42 percent of Americans have less than $10,000 saved. If they don’t boost their savings, they’ll likely retire broke because that’s not enough to cover a year’s worth of expenses. On average, adults 65 and older spend almost $46,000 a year, according to the Bureau of Labor Statistics. Included in that 42 percent with less than $10,000 saved is the 14 percent of respondents with absolutely nothing saved for retirement.
As a percentage of total net worth, here’s how home equity stacks up in each age group:
In the Real Estate Market?
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