How much does an American household typically have in retirement savings? In June 2015, a report about the current financial status of households between the ages of 55 and 64 was released by the Government Accountability Office.
The report showed that the average American household has only $10,000 to $20,000 in retirement savings. 41% of households do not have retirement savings at all.
The 41% who don’t have savings will likely not spend retirement with nothing. 56% own a home and 22% of that 56% have paid it off. Also, the majority of the group will eventually receive some sort of social security benefit.
Out of the 59% who did acquire savings, 7% saved less than $10,000 and 9% saved more than $500,000. 87% owned their home, but only 27% paid have paid off the house entirely.
While these numbers may seem dire, it is important to remember that these statistics come from millions of homes with different values and priorities. If you’re curious about your retirement down the road, it’s never too late to start a rough financial plan for your future.