If you’re approaching retirement age, you’re in good company—millions of boomers are right there with you.
In the next few decades, one out of every five Americans will have reached or surpassed Social Security’s “full retirement age” of 65, according to the most recent U.S. Census data release.
“Between 2012 and 2050, the United States will experience considerable growth in its older population,” writes the Census Bureau in a May 2014 report, “An Aging Nation: The Older Population in the United States.”
By 2030, the 65-and-older demographic will comprise about 20% of the overall population—compared to 13% in 2010—and stay at roughly that level for the next two decades.
The 65+ population will reach 83.7 million in 2050—almost double what it was in 2012, at around 43.1 million. At this time, the overall population is expected to number about 400 million, for a senior population of about 21%.
With so many older Americans, and so many of those people retiring, the United States will face several challenges relating to aging and retirement.
“The aging of the population will have wide-ranging implications for the country,” the Census Bureau report says.
Challenges are expected to arise in areas such as Social Security, Medicare, health care, and for many, retirement security.
Recession’s impact on retirement savings
The Great Recession and housing market crash took a toll on many older Americans’ retirement portfolios. For some, retirement savings were decimated. Others were forced to delay retirement for years. Still others had to emerge from retirement and re-enter the workforce.
The important thing is to be prepared and have a good idea of what you’ll need to do in order retire.
People who have planned for retirement and have a specific financial plan are much more confident in their future, found the Employee Benefits Research Institute in its 2014 Retirement Confidence Survey. The most recent survey found rebounding confidence in the percentage of workers who believe they will have enough money for a comfortable retirement.
“Retirement confidence is strongly related to retirement plan participation,” noted Jack VanDerhei, EBRI research director, and co-author of the report. “In fact, workers reporting they or their spouse have money in a defined contribution plan or IRA or have a defined benefit plan from a current or previous employer are more than twice as likely as those without any of these plans to be very confident.”
A large component of retirement planning has to do with figuring out what your future cost of living will be and how your monthly expenses measure up to your monthly income. In retirement, common income sources are Social Security benefits, a pension, savings, retirement portfolio earnings, or reverse mortgage proceeds.
Have you given thought to retirement planning and what you need to do to achieve a comfortable, sustainable standard of living in your golden years? Plug your information into our Retirement Calculator to generate an automated snapshot of what to expect and plan for.
Still have questions? Find out more today.
