When you hear the word senior, what comes to mind? Fixed income, struggling with inflation, low income or poor, living from one Social Security check to the next?
No doubt you have read many articles relating those “facts.” That’s also the picture nearly every politician paints and uses to buy votes by appealing to that stereotype. After all, the average Social Security annual benefit is only $18,170.
Certainly there are some seniors who fit that description, but there are far more who don’t despite these figures:
Social Security benefits represent about 33% of the income of the elderly.
ο Among elderly Social Security beneficiaries, 50% of married couples and 70% of
unmarried persons receive 50% or more of their income from Social Security.
ο Among elderly Social Security beneficiaries, 21% of married couples and about 45% of
unmarried persons rely on Social Security for 90% or more of their income.
The fact is most seniors are equal to or better off financially than many younger Americans. And most had forty or more years working to accumulate assets and prepare for retirement years. Retired seniors can’t lose their job or their health insurance. Most aren’t worried about college bills for children and certainly they don’t have to save for their future.
The median income for a 75 year old is $52,980.00 and for a 40 year old $50,135.00. The average being $79,290.20 and $70,361.07.
Here are some net worth examples.
Individuals age 65-69 have an average of $1,250,679 and a median of $271,805. Compare that with those age 45-49 with $761,560 and $164,197.
Now let’s look at poverty by age. As you can see, poverty does not favor seniors, but the opposite.
Seniors are a relatively small (but growing) portion of the population.
According to the 18th Annual Transamerica Retirement Survey, 70 percent of American workers dream of traveling once they retiree. There’s one potential obstacle standing in the way of those dreams: the cost. The average retiree spends $11,077 per year on travel. Meanwhile, the mean after-tax household income for seniors 65 and older was $44,051 as of 2017. Source: https://www.bostonpremierwealth.com/retirement