11 Real Facts about Retirement
Retirement is Great!
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!
Disclaimer: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with Grandview Asset Management, LLC. The material provided is for general information, and should not be considered a solicitation for the purchase or sale of any security and does not constitute individualized investment advice. Copyright 2020 FMG Suite.