Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

How can people retire with such small amounts saved? Average retirement savings at age 60-65 is only $200,000?

The average retirement savings of a 60-65 year old is about $200,000. How is that enough to retire on? If you live another 20 years that means you can only spend 10k a year , and that’s not even accounting for potential medical bills and emergencies. I don’t get how people retire comfortably on that little amount of money?

Update:

A 2 week stay in the hospital for pneumonia for them could wipe out a third to a half of their savings 

6 Answers

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  • RICK
    Lv 7
    1 month ago

    Most dont use their savings for day to day expenses

    Many have both SS and a pension

    Since the average SS is $1550 a month thats only $18,600 a year

  • 1 month ago

    They don't plan to live off of only their savings.  They expect to receive social security and perhaps a pension.

  • 1 month ago

    A 2-week stay in the hospital for a senior citizen, they will pay $1408 for their medicare deductible and have $0 co-insurance fees. More likely their medicare advantage or supplement cost will pick up all unpaid medicare expenses for this hospitalization.

    Besides the retirement savings, most people will receive social security or private pensions. 

    - For most people social security is not $30000 a year but since it's often 100% tax free, it makes the money go significantly farther. 

  • fcas80
    Lv 7
    1 month ago

    Agree - it's not enough to retire comfortably.

    Hoprfully Social Security and pensions, and possibly part-time work  provide some income.

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  • Anonymous
    1 month ago

    most people have insurance so that even long hospital stays max out at $7400 a year out of pocket.

    And if you own your house and your car you are retired you don't need a lot to live on.

    But the average also does not mean lots retire with that. Many have over a million while others have nothing.

    And nobody is going to use all their savings to pay a medical debt. They may pay $50 a month or nothing.

  • G
    Lv 5
    1 month ago

    It's not a comfortable living. Social Security adds another $30k to that and maybe they've paid off a house by then. A lot of folks work under the table or under the SSI limits in retirement.

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