“How do I compare to my peers?” This is a question that many of us ask ourselves, especially as we approach retirement.
In a recent video by Azul Wells, he delves into this topic, providing some insightful data on the average income and net worth of retirees in the United States.
The Median Net Worth of a 65-Year-Old Retiree
According to Wells, the median net worth of a 65-year-old retiree in the United States is approximately $270,000. This figure is calculated by subtracting liabilities from the value of assets. For instance, if a retiree owns a home worth $500,000 but owes $200,000 on it, their net worth would be $300,000.
The Debt Situation
Interestingly, about 50% of people are debt-free by the time they reach 65. However, this statistic is trending in the wrong direction. In 1999, over 75% of people were debt-free by 65. Wells attributes this shift to the rise of consumerism and the ease of online shopping, which often leads to unnecessary purchases.
The Mortgage Factor
The video also highlights the importance of paying off mortgages before retirement. Currently, about one in eight people still have a mortgage at 65. This figure has also increased since 1999 when only 6.6% of people still had a mortgage at 65.
The Median Income for a 65-Year-Old Retiree
The median income for a 65-year-old retiree in the United States is just under $50,000, specifically $47,357. This income is largely thanks to the safety net provided by Social Security.
Additional Insights
According to an article on The Motley Fool, the average income for U.S. adults 65 and older is $75,254, while the median income is $47,620. The average annual expenses for adults 65 and older are $48,872. The average monthly Social Security benefit for retired workers is $1,681 and is set to rise to $1,827 in 2023.
The data from the U.S. Census Bureau supports these findings, indicating that the average retirement income for U.S. adults aged 65 and older is $75,254, and the median income for that age group is $47,620.
How Do You Compare?
The data presented by Azul Wells and supported by external sources provides a comprehensive look at the financial situation of the average retiree in the United States. It’s clear that while many retirees are financially stable, there’s a significant portion that still carry debt or a mortgage into their retirement years.
As we approach retirement, it’s crucial to consider these statistics and plan accordingly. Whether it’s striving to be debt-free, paying off a mortgage, or ensuring a steady income stream, these factors can significantly impact the quality of our retirement years.
So, how do you compare?
The Video
https://www.youtube.com/watch?v=wrTZu_CdDjU
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Martha A. Lavallie
Martha is a journalist with close to a decade of experience in uncovering and reporting on the most compelling stories of our time. Passionate about staying ahead of the curve, she specializes in shedding light on trending topics and captivating global narratives. Her insightful articles have garnered acclaim, making her a trusted voice in today's dynamic media landscape.
