2024 Retirement Stats You Need to Know
The biggest retirement threat isn’t running out of money — it’s planning too late
🏦 Americans Are Behind — and They Know It
- 57% of U.S. adults say they're not on track for retirement (NerdWallet, 2024).
- 1 in 3 Americans has $0 saved for retirement.
- The average American thinks they need $1.8M to retire — but the average retirement account balance is under $89,000.
💸 The Cost of Waiting Is Getting Expensive
- Every year you delay planning, you need $100,000+ more saved to retire comfortably.
- A 25-year-old who saves $250/month can retire a millionaire — a 45-year-old would need to save $1,250/month to reach the same number.
📉 401(k)s Are Losing Trust
- 42% of workers don’t believe a 401(k) alone will support them in retirement.
- 401(k) plans lost an average -18% in 2022 and still haven’t fully recovered for most savers.
- Nearly 60% of Black and Hispanic households do not have access to employer-based retirement plans.
💡 The New Retirement Shift: Tax-Free + Market-Protected Alternatives
- Indexed annuity sales hit record growth of 31% in 2024 — now the #1 retirement product for risk-free growth.
- IULs are the fastest-growing life insurance product in the U.S. — up 27% in 2024.
- 72% of people who learn about tax-free retirement income tools say they would choose them over 401(k)s if they actually understood how they worked.
🏜️ Arizona Retirement Snapshot
- Arizona is now a top 5 relocation state for retirees — but most are coming unprepared, with less than $100K in savings.
- Arizona cost of living has increased 22% in 3 years, making traditional retirement planning strategies obsolete.
- School districts + municipalities are now shifting to alternative retirement benefit options (like FIAs + IULs) to retain talent.
Average Retirement Savings by Age
Under 35
$23,000 average savings
Many young adults struggle to save for retirement while paying off student loans and building their careers.
35-44
$67,000 average savings
This age group is starting to prioritize retirement savings, though balancing other financial goals can be challenging.
45-54
$120,000 average savings
Pre-retirees in this age group are ramping up savings to prepare for a comfortable retirement.
Retirement Income Sources
1
Social Security
The primary source of income for most retirees, providing 33% of total retirement income on average.
2
Personal Savings
401(k)s, IRAs, and other personal savings account for 27% of retirement income.
3
Pensions
Traditional pensions provide 19% of retirement income, though they are becoming less common.
4
Part-Time Work
Earning income from part-time jobs or consulting work accounts for 8% of retirement income.
⚠️ Biggest Retirement Risk in 2024
Not the market.
Not inflation.
Taxes.
Experts predict future tax rates could reach 40–50% — making tax-free retirement tools more valuable than ever.
Not inflation.
Taxes.
Experts predict future tax rates could reach 40–50% — making tax-free retirement tools more valuable than ever.
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All Professional Media Credit to Tosha Ishmon (Ishmon Productions)