Retirement Income and the Future of Retirees

Last updated on August 26, 2014

According to a 2013 Census Bureau data, “the majority of the retirement-age population had some source of household income besides earnings at their disposal. Only 11% of workers and 4% of non-workers reported no other source of income.” The net worth of a household income is a vital factor in the economic well-being of people during their employment years and especially during retirement.

The percentage of younger individuals who are employed versus the percentage of retired workers is also an instrumental factor for the well-being of the economy. According to U.S. Census Bureau population projection, it is expected that 20.7% of the population will be 65 years of older by the year 2050. In 2000, it stood at 12.4%.

Individuals 65 years of age or older currently live on an average of $37,847 a year. That is around 60% of the annual earnings that an employee usually earns during his or her working years. According to experts, for a worker to carry on with a more comfortable lifestyle during retirement, he or she really needs around 70% of the earnings brought in from a regular paycheck.

Another important factor is the extension of an individual’s working years. Many older people continue to work well beyond the time when they qualify for retirement. The Bureau of Labor Statistics suggests that the labor force participation rates for those 65 years and older will increase through 2014.