More than half of peak 65 Americans “almost certain” to outlive their savings

investmentnews.com:

A recent study by the Alliance for Lifetime Income has revealed significant financial challenges faced by Americans on the brink of retirement.

The research indicates that half of Americans aged 61 to 65, known as peak 65 consumers, have already retired and begun claiming Social Security benefits. The findings highlight a growing dependence on Social Security amid concerns about inadequate retirement savings.

The 2024 Protected Retirement Income and Planning study, now in its sixth year, surveys both consumers and financial advisors to provide a comprehensive view of the retirement landscape.

The study found wide disparity in investable household assets among peak 65 consumers, which shapes their outlook on retirement. Fifty-one percent have less than $100,000 in assets, 25 percent have assets between $100,000 and $500,000, 13 percent have assets ranging from $500,000 to $1 million, and 11 percent possess assets exceeding $1 million.

Jean Statler, chief executive officer of the Alliance for Lifetime Income, emphasized the financial uncertainty many face.

“More than half of Peak 65 consumers have saved $100,000 or less. It’s almost certain they will run out of savings and have to rely on Social Security as their only income,” Statler said in a statement.

The study revealed a mixed picture on the emotional impact of these financial challenges among peak 65 Americans. Thirty-four percent of respondents expressed worry about their financial situation, while 33 percent felt confident. And even as 39 percent were uncertain, 42 percent remained optimistic about their financial future.

Focusing on retirement timing, the study found that half of peak 65 consumers have already retired, with the average retirement age being 57.7.