Retirement can have many meanings. For some, it will be a time to travel
and spend time with family members. For others, it will be a time to
start a new business or begin a charitable endeavor. Regardless of what
approach you intend to take, here are nine things about retirement that
might surprise you.
- 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 65.¹
- Every day for the next 15 years, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.²
- In 2010, people aged 65 and older accounted for 13% of the population in the U.S. By 2025, they are expected to make up 18% of the population
- 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.⁴
- 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.⁵
- Nine of ten adults aged 65 years and older take at least one prescription drug every day.⁶
- In 2010, nearly one-third (32%) of those 65 and older depended on Social Security for 80% or more of their income. The average monthly Social Security benefit at the beginning of 2014 was $1,294.⁷
- Centenarians — those over age 100 — are the fastest-growing demographic group in the U.S. Between 2000 and 2010, this group roughly doubled in size. In the 2010 census, nearly 83% of centenarians were women.⁸
- Seniors
watch more television—live, on the internet, and on mobile devices—than
any other age group, even teenagers. In the first quarter of 2013, the
65-and-older age group averaged over 275 hours of television per month,
compared with 120 hours for kids aged 12 to 17 years.
Conclusion
These stats and trends point to one conclusion: 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.
Postponing Retirement?
22% of workers now intend to keep working until age 70 and beyond. And 7% don’t intend to retire at all.
Chart Source: Employee Benefit Research Institute, 2014.
