Interesting Stats

[Fishindude77]

Saw these stats on a company's website. This is one of their ways to encourage you to go with their services now while you are able to. Can't vouch for the accuracy, but it doesn't seem too far off?

Out of 100 people by age 65:
1 will be wealthy
6 will have adequate retirement income
33 will be dead
10 will still be working
50 will be flat broke

[disneysteve]

One flaw is that it assumes that the people still working are doing so because they can't afford to retire. I know plenty of people who continue to work even though they have plenty of money.

[bjl584]

One flaw is that it assumes that the people still working are doing so because they can't afford to retire. I know plenty of people who continue to work even though they have plenty of money.

I wonder if they are implying that that 10 out of 100 will still be working because they have to?

I too know a few people that work but don't need to.

[Fishindude77]

I wonder if they are implying that that 10 out of 100 will still be working because they have to?

That's the way I interpret it.

[Like2Plan]

Saw these stats on a company's website. This is one of their ways to encourage you to go with their services now while you are able to. Can't vouch for the accuracy, but it doesn't seem too far off?

Out of 100 people by age 65:
1 will be wealthy
6 will have adequate retirement income
33 will be dead
10 will still be working
50 will be flat broke

If 50 are flat broke, why aren't they working with the other 10?
(Does that mean employment prospects aren't so good at 65? Or, do health issues crop up at 65 for the majority of people? )

[TexasHusker]

Not sure which "company" is posting this stat, but it sounds like the ol' cancer insurance pitch: "Did you know that one out of three people get cancer?"

Yes, and 2 out of 3 do not.

[disneysteve]

If 50 are flat broke, why aren't they working with the other 10?

Many people retire out of necessity, not desire. Health problems and plain old physically can't do it anymore. Or maybe they have a sick spouse they need to care for. Or they are raising grandkids due to parental issues.

I believe about 40% of people get 90+% of their income from Social Security (that's off the top of my head - I didn't look up the exact figure).

And for a lot of people, SS is all they need to be comfortable. I know we all talk about saving millions but the reality is that a great many people don't need that. They get by just fine with their monthly check.

[Like2Plan]

Many people retire out of necessity, not desire. Health problems and plain old physically can't do it anymore. Or maybe they have a sick spouse they need to care for. Or they are raising grandkids due to parental issues.

I believe about 40% of people get 90+% of their income from Social Security (that's off the top of my head - I didn't look up the exact figure).

And for a lot of people, SS is all they need to be comfortable. I know we all talk about saving millions but the reality is that a great many people don't need that. They get by just fine with their monthly check.

It does give some comfort that they really aren't "flat broke" if you assign an annuity value to the SS benefits.

I was surprised to find that most folks do not wait for full retirement age FRA to collect SS (I've read on the Boglehead board that 50% claim at 62 even though waiting would provide a higher amount.) link to SSA policy (dated 2014)

[Fishindude77]

Not sure which "company" is posting this stat, but it sounds like the ol' cancer insurance pitch: "Did you know that one out of three people get cancer?"

It's a company trying to sell high priced recreational vacations.

[disneysteve]

It's a company trying to sell high priced recreational vacations.

Ahh. I thought it was a financial services firm.

That makes a lot more sense. So they are trying to scare people into thinking they won't live long enough to do stuff so better do it now.

That makes that data highly suspect.

That doesn't make sense, though. If 50% of people will be broke by the time they're 65, they can't afford to take a costly vacation now.