401(k) Specialist Issue 1 - 2022 - 38

401(k) STATS & FACTS
11 Eyebrow-Raising Retirement Facts
A cherrypicked selection of startling statistics and trends taken from the Secure Retirement Institute's
recently released Retail Retirement Reference Guide
T
he good folks over at LIMRA's Secure Retirement Institute were kind enough to send us over a hard copy of the recently released fifth
edition of its Retail Retirement Reference Guide, chock full of 161 pages of valuable research and insights about the U.S. retirement
income market.
We cherrypicked some of the facts and figures we thought 401(k)-focused advisors might be most interested in, with the idea that it might
spur you into checking out the guide for a deeper dive into the key trends and insights (and emerging opportunities) shaping today's retirement
market. And these are taken only from Chapter 1 ( " The Retirement Market " ) of the five-chapter guide! Subsequent chapters include
" Retirement Risks and Other Planning Challenges, " " The State of Retirement, " " Advisors and Retirement Income Advice, " and " Retirement
Income Products. "
The complete guide, compiled by Drew Maresca and Matthew Drinkwater, Ph.D., FSRI, FLMI, AFSI, PCS, and which LIMRA members can
download for free, can be accessed at LIMRA.com.
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There are 55 million retirees in the
U.S. (accounting for 19% of the population),
a number that will increase
to 71 million by 2030 and 77 million by 2035,
representing a 40% increase from today.
Nearly 33 million Baby Boomers-one-third
of all Americans
between ages 56 and 74 in 2020-
have already retired. That makes up about
60% of all retired Americans. As of 2020,
there were more than 100 million pre-retirees
(including 62 million Gen Xers and 37 million
Boomers), representing a major opportunity
for retirement income planning.
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By 2022, the number of Americans
reaching age 65 every day will rise
to 11,000. By 2053 it will be 12,000
per day, and 13,000 per day in 2055. The first
wave of Gen X will turn 65 in 2030.
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ISSUE 1 2022 | 401kSpecialist.com
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Retirees drew nearly $2 trillion
in income in 2019, at an average of
$33,277 per retiree. The mean and
median income of a fully retired household
was $53,000 and $34,300, respectively.
Retirees and Boomer households
yet to retire own 74% of all investable
assets-about $34 trillion. As
of 2020, Gen Xers own 23% of wealth in the
U.S., up from 14% in 2016. Millennials possess
just 3% of total wealth, and non-retired
Baby Boomers possess 26%-down from
34% in 2016.
41% of U.S. households under age
55, and 32% of households age 55
and older, have not saved in a DC
plan or an IRA, nor do they have access to a
pension plan.
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The rollover market will reach
nearly $760 billion by 2025,
according to Secure Retirement Institute
estimates. Rollover balances among investors
in their 60s average around $200,000.
The estimated market for retirement income
products will grow from approximately $18
trillion in 2019 to $32 trillion in 2029.
Social Security and pensions
remain the two largest sources
of retiree income. In total, Social
Security (37%) and pensions (23%) made
up 60% of aggregate retiree income in 2019.
Workplace retirement plans and IRAs made
up 8% of aggregate retiree income, but continue
to grow. Pension income, meanwhile,
will continue to evaporate. As of 2020, 51%
of the Silent Generation still had access to
pension income, and 39% of Boomers had
pensions. Only about 24% of Gen X, 16% of
Millennials and 8% of Gen Z are expected to
receive pension income.
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401(k) Specialist Issue 1 - 2022

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