The average retiree has approximately $178,000 in retirement funds — only about 39% of the recommended savings, according to a new survey by the personal finance website Clever.
The firm also found that although they’re holding on to less debt than non-retirees, who have an average of about $44,000, retired Americans have been hit harder financially in the past year: The average retiree took on an additional $9,779 in debt 2020, increasing their debt by 104%. Non-retirees, on the other hand, accumulated an additional $5,035, only increasing their debt by 13%. Many retirees also have taken part-time jobs to cover living expenses, according to the report, which was based on a survey of 1,500 Americans on their retirement funds, debt and financial worries.
The COVID-19 pandemic also has forced some older adults to dip into their nest eggs earlier than planned, according to an NPR report Monday. The article explores how some seniors have had to quit part-time jobs to care for spouses who used to attend adult day centers that have been shuttered due to the virus. Those who have savings have to decide whether they should dip into their accounts early, potentially eating away at funds they had earmarked for later. Others are having to calculate how starting to receive their Social Security payments earlier than planned could reduce their checks in the future.
“Who can even think about it — your retirement? If you’re struggling to put food on the table today, you’re going to do whatever you have to do that’s legal to be able to maintain yourself and your family,” Beth Finkel with AARP New York told NPR.
