Here’s How Much the Average Retiree Has in Savings — And Where They Keep It

Despite what accepted fiscal proposal mightiness dictate, the mean retiree isn’t sitting connected a million-dollar nest egg. A caller study from the Transamerica Center for Retirement Studies found that lone 17% of existent retirees person full household savings of $1 cardinal oregon more, excluding location equity.

Here’s however overmuch the mean retiree really has saved, positive wherever they’re keeping their money.

The study recovered that the estimated median full household savings for retirees, excluding location equity, is $126,000. One successful 10 retirees (12%) person nary savings, 25% person saved $1 to little than $100,000, 18% person $100,000 to little than $500,000, 12% person $500,000 to little than $1 million, and 17% person $1 cardinal oregon more.

Yet, contempt these figures, galore retirees are doing conscionable fine.

“What we spot successful the survey information is retirees are faring good successful retirement,” said Catherine Collinson, CEO and president of the Transamerica Institute. “They’ve adjusted their expenses and their currency travel truthful they’re capable to marque it enactment — for the astir part.”

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While retirees are capable to get by connected a day-to-day basis, Collinson did enactment that their household savings mightiness not clasp up if they look a fiscal shock. Two communal and costly ones are large location repairs oregon a wellness incidental that requires semipermanent care.

“Things similar assisted surviving and in-home attraction person go progressively costly — and $126,000 would not spell that far,” Collinson said.

It’s besides important that retirees person capable entree to liquid cash. The study recovered that the median exigency money equilibrium among retirees is $13,000, which whitethorn not beryllium enough.

“More is better,” Collinson said. “That $13,000 mightiness not adjacent screen a extortion repair. It is truly important for retirees to person currency connected manus to beryllium capable to screen those types of things. We anticipation that if we person an emergency, it isn’t arsenic overmuch arsenic that, but it tin happen.”

Having liquidity is particularly important for retirees.

“Retirees are much susceptible to fluctuations of the fiscal markets,” Collinson said. “You don’t privation to instrumentality a withdrawal from a down marketplace due to the fact that it further depletes your savings. So retirees [should person an] capable magnitude of exigency savings disposable successful liquid assets, similar currency oregon wealth marketplace funds.”

When retirees were asked wherever they support their savings and investments, they astir often cited a slope relationship (78%), superior residence (54%), IRA (41%), brokerage relationship (38%), beingness security argumentation (37%), 401(k), 403(b) oregon akin program (27%), and annuities (22%). Only 9% person existent property different than their superior residence and 5% person a wellness savings account.