11 Real Facts about Retirement!
What’s great about retirement?
Retirement can have many meanings. For some, it will be a time to travel, whether domestic or international, or spend time with the family. For others, it will be a time to start a new business or begin a new life endeavor. Regardless of the direction you choose in retirement, here are 11 real facts about retirement that you can’t ignore!
- Many consider the standard retirement age to be 65. One of the key influences in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65. (per the Social Security Administration, 2015)
- Every day for the next 20 years, another 8,000 baby boomers will turn 65. That’s roughly one person every 10 seconds. (per AARP, 2015)
- In 2015, people aged 65 and older accounted for 15% of the population in the U.S. By 2050, they are expected to make up more than 22% of the population. (per the U.S. Census Bureau, 2016)
- Ernest Ackerman was the first person to receive a Social Security benefit. In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢. Ackerman worked one day under Social Security. He earned $5 for the day and paid a nickel in payroll taxes. His lump-sum payout was equal to 3.5% of his wages. (per the Social Security Administration, 2015)
- In 2001, people aged 65 and older owned 31% of the U.S.’s financial assets. By 2040, it is estimated they will hold 44% of the country’s financial assets. (per the National Bureau of Economic Research, 2015; (landmark study conducted in 2004)
- Nine of ten adults aged 65 years and older say they have taken at least one prescription drug in the last 30 days. (per the Centers for Disease Control and Prevention, 2015)
- In 2015, nearly two-thirds (62%) of retirees depended on Social Security as a major source of their income. The average monthly Social Security benefit at the beginning of 2016 was $1,341. (per the Employee Benefit Research Institute, 2016 Retirement Confidence Survey; Social Security Administration, 2016)
- Centenarians — in 1980 there were 15,000 of them. Today there are more than 72,000. And 80% of them are women. (per the The New York Times, January 21, 2016)
- Seniors spend a lot of time doing leisure activities, 7 to 8 hours a day. (per the Bureau of Labor Statistics, June 24, 2015)
- 26% of workers now intend to keep working until the age of 70 and beyond. 10% don’t even intend to retire at all. (per the Employee Benefit Research Institute, 2016.)
- 20% of retirees are currently providing financial support to a relative or friend. (per the 2015 Retirement Confidence Survey, EBRI)
Are you ready for Retirement?
With these statistics in mind, we can agree on one thing; the 65-and-older age group is expected to become larger and have more influence in the future. Have you made arrangements for health care? Are you comfortable with your investment decisions? If you are unsure about your decisions, maybe it’s time to develop a solid strategy for the future! Let us help. Our team at Grandview Asset Management are always available for you, contact us today to setup an appointment!
This information is provided for general information only, and is not intended as personalized investment advice. This article is not intended to be any form of financial planning, investment, tax or legal advice. There is no substitute for individualized investment advice, and no conclusions should be drawn from this information. All readers should contact their professional investment, legal and tax advisors before entering into any investment or investment agreement.