40 Scary Facts About Retirement

The traditional path to retirement was to put away a certain amount of personal savings, build a retirement fund — often with the help of an employer — and transition smoothly into the golden years of leisure and travel.  But retirement finances have undergone a rapid evolution, accelerated by larger economic trends and the disruptions of the COVID-19 pandemic.

1. The Great Resignation Was Actually the Great Retirement

An unprecedented number of employees have quit their jobs since the beginning of the pandemic. But millions of workers who resigned in the past two years weren’t looking for another job. They were retiring.

2. On Average, Retirees Have Saved Only One-Third of the Recommended Amount

Experts recommend saving $514,800 for retirement. The average retiree has saved about $191,600 — just over one-third of the recommended amount. As a result, two-thirds of retirees feel unprepared for retirement.

3. Nearly One-Third of Retirees Have Saved Nothing for Retirement

Although the average retiree has saved much less than the recommended amount, nearly one-third of retirees (30%) have saved nothing at all for retirement.

4. Retirees Were Hit Hard by the Pandemic

Many people were impacted by the economic downturn caused by the pandemic, but retirees were hit especially hard. Nearly half of retirees (48%) reported that the downturn hurt their finances. 

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