Startling Stats on American Workers and Retirement

On our Money Matters radio show, which airs Sundays on WSB Radio AM750/95.5, our host Wes Moss shared some important statistics a few weeks ago.

On the October 21 show, Wes shared important details that American workers should know as it relates to their investments and future plans for retirement. A few important stats to note:

  • About 25-42% of private sector workers ages 25-64 currently have a pension, as compared to more than 50% in the 1970s and 1980s.
  • For 2012, less than 30% of workers currently have $1000 or less in savings or investments.
  • For an aging couple over age 60 retiring today, it would take more than $240,000 to cover medical expenses during retirement.
  • 16% of American workers are confident their investments will grow in value.

These are some startling statistics, but Wes quoted that probably one of the most alarming stats of 2012 is that we are at the lowest interests rates on record in the the history of the U.S. …ever. For example, in October 2007, if you wanted to gain $1000 by keeping your money in a Money Market account for 12 months, you would need to invest $22,000. In today’s market, to gain that same $1000 within 12 months, you would need to invest $3.3 million.

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Please follow the link to hear the radio show from October 21: