Retirement Readiness by the Numbers
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Published research shows most people feel unready for retirement, and that deliberate planning measurably changes outcomes.
Top Retirement Options collected the statistics below from published studies so readers can see the scale of the problem before choosing between retirement coaching and financial planning. Each figure links to its source.
How ready are people for retirement?
Not very. EBRI data cited by the Financial Planning Association found just 14 percent of Americans were confident they could retire comfortably. Research also shows that simply calculating what you will need is linked to thousands of dollars more in savings, which supports planning both the money and the life.
The statistics
14%
of Americans were confident in their ability to retire comfortably (EBRI data, Helman, Copeland, and VanDerhei 2012).
Source: Financial Planning Association, "A Comparison of Retirement Strategies and Financial Planner Value"
38%
of all private workers participated in employer-sponsored defined contribution plans (same EBRI data).
Source: Financial Planning Association, "A Comparison of Retirement Strategies and Financial Planner Value"
$16,600
in additional retirement savings for respondents over 40 was linked to a 10 percent increase in the likelihood of calculating retirement income need (Mayer, Zick, and Marsden 2011).
Source: Financial Planning Association, "A Comparison of Retirement Strategies and Financial Planner Value"
Up to 19%
lower annual savings than optimal for households aged 35 to 45 (Bernheim 1993, range 9 to 19 percent).
Source: Financial Planning Association, "A Comparison of Retirement Strategies and Financial Planner Value"
Up to 20%
increase in savings rate the median household would need to replace pre-retirement consumption (Bernheim, Forni, Gokhale, and Kotlikoff 2000).
Source: Financial Planning Association, "A Comparison of Retirement Strategies and Financial Planner Value"
34%
of caregivers had less than $10,000 in savings and investments, compared with 25 percent of non-caregivers.
Source: EBRI, "Caregivers and Retirement: Findings From the 2026 Retirement Confidence Survey"
What these numbers mean for choosing help
The research above is about money, and it makes the case for a financial planner. But low confidence is not only financial. For high achievers, the bigger unknown is often what the days will be for. That is the gap a structured retirement coaching program like Rarified Life Preferment is designed to close, alongside a planner.
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Common questions
- What percent of Americans have $1,000,000 in a 401k?
- Only a small share of savers have $1 million or more in a single 401(k). Fidelity publishes a quarterly count of 401(k) millionaires on its platform, which is a useful benchmark, though it covers only Fidelity accounts. Most retirees rely on a combination of Social Security, workplace savings, and other assets rather than one large account. More in the FAQ
- How much do most retirees live on per month?
- Retiree spending varies widely by location, housing, and health. The U.S. Bureau of Labor Statistics Consumer Expenditure Survey publishes average annual spending for households aged 65 and older, which you can divide by 12 for a monthly benchmark. Your own number matters more: track three months of actual spending before deciding how much income you need. More in the FAQ
- Can I retire at 62 with $300K in my 401k?
- Possibly, if Social Security, a pension, or other income covers most of your expenses. Using the common 4% guideline, $300,000 supports roughly $12,000 a year in withdrawals before taxes. Claiming Social Security at 62 permanently reduces your benefit compared with waiting. A fee-only financial planner can test your actual numbers, including healthcare costs before Medicare at 65. More in the FAQ
- How are long-term capital gains taxed in retirement?
- Long-term capital gains are taxed at 0%, 15%, or 20%, depending on your taxable income, as noted in the article "Do You Need a Retirement Coach? 6 Ways They Help." Some retirees in lower brackets can realize gains at the 0% rate. Tax planning is a financial planner’s job, not a retirement coach’s, so confirm your bracket with a tax professional. More in the FAQ
- What is the difference between a retirement coach and a financial planner?
- A retirement coach helps you decide what your life after work is for; a financial planner helps you pay for it. Planners handle savings, investments, taxes, and income timing. Coaches handle identity, purpose, structure, and accountability. Most people benefit from both. If money is settled but you feel unsure what comes next, start with a coach or program like Preferment. More in the FAQ