Are you looking for some interesting retirement statistics for 2023? Our ultimate guide will definitely be a great starting point.
Retirement Demographics – Retirement Statistics for 2023
Retirement Age
- The United States was one of the earliest in legislating a retirement age increase to age 67. (Source: oecd.com)
Why this matters: “As the Social Security pension scheme is not allowed to borrow, it will be obliged to cut benefits when its reserve fund is fully depleted so that total benefits can be covered by total contributions. Unless policy measures are taken before the depletion of the fund pension benefits are expected to make a sudden drop of 24%.” This means that there might be a need to increase the age for retirement in the United States.
Longevity – Retirement Statistics 2023
- The pace of population aging in The US is much slower than in many OECD countries.
“The number of people aged 65 and over for every 100 people of working age will rise from 28 today to 40 in 2050. This compares to 30 and 53 on average in the OECD.” (Source: oecd.com)
Why this matters: “Longevity inequality has increased in recent decades while there is mixed evidence among OECD countries. It is a particular issue in the US as differential mortality offsets a large part of the redistribution towards low earners built into the Social Security pension formula.”
Excess Mortality
- “Excess mortality in the US due to COVID-19 has had a larger impact on period
life expectancy at birth estimates in 2020 than for the vast majority of OECD countries.
Around 20% more deaths were recorded between January 2020 and August 2021 than would have been expected, both among the total population and those aged 65+, (Source: oecd.com)
Why this matters: The US is the country with the highest fall in life expectancy at birth, at 1.6 years.”
Retirement Statistics 2023 – Women And Retirement
- “Women comprise 75 percent of nursing home residents.” (Source: pubmed.ncbi.nlm.nih.gov)
Why this matters: Women need a special care fund or care plan to ensure they have funds available for their care – and not rely on public funding and availability of long-term care only. They also need to improve working on their health and well-being in a more preventative way. In addition, they need to plan ahead.
2. “Women were more likely to have arthritis, osteoporosis and a history of fracture. “ bmcgeriatr.biomedcentral.com)
Why this matters: Women need to focus on their bone health and take more advantage of health screenings like bone density tests. In addition, a greater focus on holistic fitness is needed.
3. “60% of women said they were concerned they wouldn’t be able to achieve a financially secure retirement, according to a February 2021 survey from the National Institute on Retirement Security. ( compared with 51% of men).” (Source: cnbc.com)
Why this matters: Women need more encouragement and professional help to build their private retirement savings.
4. Women have less confidence in making financial decisions. (longevity.stanford.edu)
Why this matters: Confidence needs to be built as early as possible. Thus, we need to spend more time educating kids about money, especially girls at an early age.
5. Most common issue of wealthy widows: too little cash (source:cnbc.com) – Retirement Statistics 2023
Why this matters: financial obligations cannot be met. Therefore, women need to create a list that shows the cash accounts in their name and their financial needs and obligations in case their spouses pass away.
Recommended For You: Six emotional stages of retirement.
Retirement Statistics for 2023 – Retirement Finances
Savings
- “Current retirees on average have income around 94% of that of the total population, compared with 88% on average in the OECD.” (Source: oecd.com)
Why this matters: “In the US income inequality is one of the highest among all OECD countries,”
2. “Private pensions play an important role in providing old-age income in the United States and represent 43% of total pension spending. (Source: oecd.com) – Retirement Statistics 2023
Why this matters: “Over half of the working-age population (15-64 years) is covered by voluntary private pension schemes: 48% participate in occupational pension schemes and 20% in personal plans, with some having both. Private pensions could play a larger role in the future.”
3. “The future net pension replacement rate from mandatory schemes for a full-career average-wage worker equals 51% against an OECD average of 62%. (Source: oecd.com)
Why this matters: Private retirement funding is more important in the US than in other OECD countries.
Retirement Statistics for 2023 – Social Security
- “Roughly 6,000 public sector retirement systems exist in the U.S. These plans have:
- $4.5 trillion in assets
- 14.7 million active (working) members and 11.2 million retirees
- $323 billion in benefit distributions annually (Source: publicplansdata.org)
Why this matters: “Significant differences exist among plans: the benefit design of their plans, manner in which plans are funded, membership composition, and investment policy.”
2. Sources of Income of Older Adults in The US (www.pensionrights.org)
| Source of income | Individuals, 2019 | Aged units, 2014 |
| Social Security | 84% | 84% |
| Assets | 68 | 62 |
| Pensions | 31 | 37 |
| Earnings | 24 | 29 |
| Public Assistance | 3 | 4 |
| Veterans’ benefits | 4 | 5 |
| No income (less than $2,500) | 1 | N/A |
Why this matters: Older adults invest more in assets and less on pensions.
Life in Retirement – Retirement Statistics for 2023
Housing
1. According to a study Georgia is the best state for retirement in the USA. (source: www.bankrate.com/)
Why this matters: Finding a place with high life quality is essential for a happy and successful retirement. No matter if you look for a house in a golf community or s state with low taxes and good weather. Georgia and Florida are both top.
2. During the years 2024-28 average growth in prescription drug spending is expected to be 5.9 percent, mainly because of faster increases in drug prices and a gradual acceleration in the growth of use and intensity, particularly for private health insurance. (source: www.cms.gov) – Retirement Statistics 2023
Why this matters: These predictions were made before the raise in inflation. As a result, we need to make a big enough budget in your retirement and/or annual plan.“Senior housing occupancy in the United States reached a record low of 78.8 percent in the first quarter of 2021, falling 1.8 percentage points from the last quarter of 2020 and 8.7 percentage points from a year ago.” (Source: nic.org)
Retirement Stats For 2023 – Senior Housing
3. “Senior housing occupancy in the United States reached a record low of 78.8 percent in the first quarter of 2021, falling 1.8 percentage points from the last quarter of 2020 and 8.7 percentage points from a year ago.” (Source: nic.org)
Why this matters: People prefer to age in place. As a result, they need to build an infrastructure to enable a healthy lifestyle at home. This includes services like hospital at home or setting up telehealth.
4. “The average cost of assisted living in the U.S. is $4,300 per month. For context, the estimated median monthly cost for a 44-hour-a-week home health aide is $4,576.” (Source: .consumeraffairs.com)
Why this matters: The population of adults older than 85 will double by 2036 and triple by 2049. As a result, capacities for senior living need to be increased drastically to meet demand.” (Source: .consumeraffairs.com)
5. The average length of a stay in an assisted living facility is 22 months. (Source: .consumeraffairs.com)
Why this matters: This helps to calculate costs for your care fund.
6. “About 71% of residents have memory impairments. About 42% of residents have moderate to severe memory loss, and an additional 29% of residents have mild impairments. Memory care is more expensive than traditional assisted living — usually 20% to 30% more than the average. (Source: .consumeraffairs.com)
Why this matters: Emphasis the importance of planning ahead, especially getting legal documents ready power of attorney.
Spending
- Health care spending for females 65 and over in 2014 ($509 billion) accounted for over 58 percent of all health care spending for older adults , higher than their share of this population (56 percent).
On a per capita basis, spending on females 65 and over in 2014 ($19,700) was 7 percent more than spending for males ($18,331), due in part to nursing care facilities and continuing care retirement communities and home health care spending for females being about twice that of males of the same cohort. (source: https://www.cms.gov/)
Why this matters: Better healthcare programs for women need to be designed to reduce care costs and improve women’s life quality.
2. Most tax friendly states for retirees
- Arizona,
- Nevada, an average of
- Colorado,
- Wyoming,
- South Carolina
- Alabama,
- Tennessee,
- Florida (Source: kiplinger.com)
Why this matters: Maximizing your retirement income means maximizing your life quality.
Work – Retirement Statistics for 2023
- Top reasons why people decide not to retire:
- Find fulfillment in an organization’s work.
- Improve your retirement finances.
- Continue to support worthy causes.
- Stay engaged and mentally sharp. (source: money.usnews.com/)
Why this matters: Longevity and having a reason to live are closely connected. Thus, staying engaged at work can have a life extending impact.
Recommended for you: Top 10 Emotional Signs You Need To Retire
2. Among people aged 75 years and older, the labor force is expected to grow by 96.5 percent over the next decade. (source: www.bls.gov)
Why this matters: “The only age group whose labor force participation rate is projected to rise are people age 75 and older, from 8.9 percent in 2020 to 11.7 percent by 2030.” This means that retirees are becoming a more important part of the American labor force.
A Word From Healthylifestyleflorida.com
As women live longer and produce much higher healthcare costs there need to be better programs to improve women’s health and reduce costs. This is especially needed in times where long term care is getting much more expensive and more difficult to access.
