Due to rising interest rates and economic uncertainty, retirement planning has become a bigger concern for many people worldwide.
With various factors influencing 401(k) balances, retirement age, and savings, we’ll explore the latest retirement statistics to reveal insights into savings trends, demographic differences, and the challenges facing future retirees.
Top Retirement Stats
- The global average effective retirement age is 64.3 years for men and 63.4 years for women.
- The total value of retirement assets in the United States reached $40 billion in Q2 2024.
- Individual Retirement Accounts (IRAs) hold the largest share of retirement assets at $14.52 trillion.
- The average 401(k) balance in 2024 is $127,100, with account holders in their 60s having the highest average balance at $239,900.
- Women have about 30% less in retirement savings than men, with median retirement savings of $31,291 compared to $45,106 for men.
Retirement Age Statistics
Retirement ages vary significantly worldwide, primarily due to economic conditions, cultural norms, and policy decisions.
Currently, the global average effective retirement age is 64.3 years for men and 63.4 years for women. But this varies widely depending on the country.
For example, the United States, Italy, and Germany have the highest retirement age (for both men and women) at 67.
Meanwhile, eastern countries such as China, South Korea, and India have much lower retirement ages. Here’s the retirement age in each of the top 15 countries ranked by GDP.
Country | Retirement Age (Men) | Retirement Age (Women) |
---|---|---|
United States | 67 | 67 |
China | 60 | 55 |
Japan | 65 | 65 |
Germany | 67 | 67 |
United Kingdom | 66 | 66 |
India | 60 | 60 |
France | 64 | 64 |
Italy | 67 | 67 |
Canada | 65 | 65 |
Brazil | 65 | 62 |
Russia | 63 | 58 |
South Korea | 62 | 62 |
Australia | 67 | 67 |
Spain | 66 | 66 |
Mexico | 65 | 65 |
Source: World Population Review, OECD
Retirement Savings & Investments
According to the latest available data, the total value of total retirement assets in the United States is $40 billion.
That represents a 1.5% increase from Q1 of 2024 and a 10.4% YoY increase from Q2 of 2023.
Of the $40 billion in retirement assets, individual retirement accounts (IRAs) represent the highest percentage (36.25%), which equals $14.5 trillion.
Below, we look at how retirement assets in the United States have grown since 2015.
Date | Total Retirement Assets |
---|---|
2024 Q2 | $40.0 billion |
2024 Q1 | $39.5 billion |
2023 Q4 | $37.9 billion |
2023 Q3 | $35.3 billion |
2023 Q2 | $36.2 billion |
2022 | $33.9 billion |
2021 | $39.7 billion |
2020 | $35.8 billion |
2015 | $24.0 billion |
As mentioned, Individual Retirement Accounts (IRAs) hold the largest share of retirement assets at $14.52 trillion.
The next closest are Defined Contribution Plans at $11.33 trillion and Government Defined Benefit (DB) Plans at $8.52 trillion.
Below, we rank the five highest retirement asset types based on the total value in Q2 of 2024.
Retirement Plan Type | Total Assets |
---|---|
Individual Retirement Accounts (IRAs) | $14.52 trillion |
Defined Contribution Plans | $11.33 trillion |
Government Defined Benefit (DB) Plans | $8.52 trillion |
Private-Sector Defined Benefit (DB) Plans | $3.17 trillion |
Annuity Reserves | $2.44 trillion |
Source: Investment Company Institute
401(k) Plan Statistics
In 2024, 401(k) plans held $7.4 trillion in assets. In total, there are more than 710,000 401(k) plans in the United States.
Approximately 70 million active participants and millions of former employees and retirees have 401(k) accounts.
In 2024, the average 401(k) balance is $127,100. 401(k) account holders in their 60s have the highest average balance at $239,900.
Age Group | Avg. 401(k) Balance |
---|---|
20s | $17,700 |
30s | $56,200 |
40s | $124,400 |
50s | $212,400 |
60s | $239,900 |
70s | $239,600 |
Source: Fidelity Investments, Investment Company Institute
Retirement Savings by Generation
There’s a significant disparity in retirement savings across generations. Understandably, Baby Boomers have saved substantially more than younger generations, with an average of $241,200 in their 401(k).
Generation X is not far behind, with an average balance of $178,500. Both Millennials ($59,800) and Generation Z ($11,300) have significantly lower average 401(k) balances.
Here’s a closer look at each generation’s retirement savings.
Generation | Birth Years | Average 401(k) Balance | Median Retirement Savings | % with Retirement Savings Accounts |
---|---|---|---|---|
Baby Boomers | 1946-1964 | $241,200 | $200,000 | 77% |
Generation X | 1965-1980 | $178,500 | $115,000 | 74% |
Millennials | 1981-1996 | $59,800 | $45,000 | 65% |
Generation Z | 1997-2012 | $11,300 | N/A | 45% |
Source: Fortune, The Motley Fool
Retirement Savings by Gender
There is a significant disparity in retirement savings between men and women.
Women typically have less money saved for retirement than men, primarily due to lower earnings, career gaps for caregiving, and longer life expectancies.
On average, women have about 30% less savings by the time they retire than men do.
According to recent data, the median retirement savings for women is $31,291 compared to $45,106 for men.
Only 22% of women have accumulated at least $250,000 in personal retirement savings, compared to 30% of men.
Age Group | Women’s Median Retirement Savings | Men’s Median Retirement Savings |
---|---|---|
18-34 | $15,000 | $25,000 |
35-44 | $30,000 | $60,000 |
45-54 | $46,000 | $101,000 |
55-64 | $43,000 | $118,000 |
65+ | $60,000 | $148,000 |
Source: Vanguard
Retirement Age & Workforce Participation
Today, the total workforce in the United States is 168.43 million people. Of that figure, approximately 24%, or 40.42 million people, are aged 55 or older.
This highlights an aging workforce that is older than ever because of an aging Baby Boomer generation. In fact, 19% of adults 65 and older are in the workforce today.
Take a look at the workforce participation and percentage of total workforce by age in more detail below.
Age Group | Labor Force Participation Rate | % of Total Workforce |
---|---|---|
16-19 | 36.60% | 4.20% |
20-24 | 71.60% | 8.70% |
25-54 | 82.90% | 63.90% |
55-64 | 65.50% | 16.80% |
65+ | 19.00% | 6.40% |
The number of older employees will only continue to grow worldwide. Projections indicate that by 2031, employees 55 and older will account for 25% of the global workforce.
Japan is expected to lead the way, with 38% of its total workforce aged 55 and older. The next highest percentage is Italy at 32%.
Below, we look at the growth of older workers in Group of Seven countries. This table includes the percentage of employees 55 and older in the workforce.
Country | 2011 | 2021 | 2031 (Projected) |
---|---|---|---|
Canada | 17.00% | 22.90% | 26.80% |
France | 13.20% | 18.10% | 25.80% |
Germany | 20.20% | 26.20% | 31.90% |
Italy | 15.10% | 21.40% | 28.40% |
Japan | 26.70% | 32.80% | 38.30% |
United Kingdom | 17.40% | 22.40% | 26.90% |
United States | 19.20% | 23.70% | 25.20% |
Source: Pew Research, U.S. Bureau of Labor Statistics, Bain & Company
Conclusion
If there’s one way to sum up the workforce and retirement today, it’s that it is getting older.
People are working until they are older than ever before and delaying retirement. That’s shown in the growing workforce participation rates among all ages, especially those 55+.
The primary driver is the shift to defined contribution plans rather than pension plans.
Traditional pensions incentivized workers to retire at certain ages, while plans like 401(k)s encourage employees to work longer.
Over the next decade, it will be interesting to see how the global workforce and retirement look with the current outlook.
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