The Fed tells us that 75% of Americans have “some” retirement savings, meaning 25% have none. Image: fizkes/Shutterstock.com
By: John Grobe, Federal Career ExpertsWe’ve gotten good feedback about our earlier “survey says” article and there’s no shortage of statistics (most from surveys) to put in another similar article. So, here it goes, more useful factoids for your enjoyment.
Redfin, a home search tool and discount real estate brokerage, reports that mortgage applications are at their lowest level since back in 1995. That could be due to increasing mortgage rates. Redfin also says that the median mortgage payment has increased 28.9% over the last twelve months.
Fidelity Investments says that of the 22 million 401(k)s they manage, only about 1.4% have balances of $1 million or more. That comes out to around 308,000 401(k) millionaires at Fidelity.
We might be turning into less fun-loving people! S&P Mobility tells us that since 2005, the sales of convertibles (cars, not bonds) dropped by 80 % and the sales of roadsters has gone down 70%. Maybe some wind in our hair and sun on our face will help our overall outlook.
The Federal Reserve does things other than tinker with interest rates, though you wouldn’t know it from the media (mainstream and otherwise). They recently announced that only 21% of non-retirees in the United States work at employers who provide traditional pensions. I wonder how many of those 21% are fellow federal employees; I bet a lot of them are.
The Fed also tells us that 75% of Americans have “some” retirement savings. That means that 25% have no retirement savings at all.
An article in Kiplinger’s Retirement Report noted that 1/3 of workers have a 401(k) type retirement plan available at work; more than the number of those who have pensions or IRAs.
The Fed jumps in with commentary on the participation rate in 401(k)s; they say that only 65% of eligible workers actually participate in them, leaving 35% not participating at all. The Fed adds that employee participation rises with income, age, job tenure, education and if the employer provides matching contributions.
What difference does delaying your application for Social Security make? SSA gives us the following numbers that represent the maximum benefit for someone applying for Social Security in 2023. At age 62 – $2,572; at their full retirement age – $3,627; and at age 70 – $4,555.
The Center for Retirement Research at Boston College found that retirees do not accurately assess retirement risks. They found that retirees overestimate the risk of market volatility and underestimate the risk of increasing health care costs. They also underestimate their longevity. The study found that this resulted in an underestimation of the value of guaranteed lifetime income. As federal retirees, we will have two important sources of guaranteed lifetime income – our FERS annuity and Social Security.
The second most attractive employer (according to a recent survey of college students and recent graduates) is the federal government, with 5% of those polled hoping for a federal job. That beats out Disney (2.2%), but trails Google (16%) by a large margin.
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The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025
Primer: Early out, buyout, reduction in force (RIF)
See also,
OPM Guidance Addresses Pay Issues arising During, After Shutdown
