10 Frightening Retirement Statistics That Will Scare You Into Action

Halloween—that time of year when Americans break out their creepy masks, horror flicks and epic pranks. It’s the one day you’re allowed to scare the bejeezus out of people.

But there’s something even more frightening than Michael Myers or a horde of zombies chasing you through your neighborhood on Halloween night . . . and that’s waking up one day in your 50s or 60s and realizing you have nothing saved for retirement. Now that’s a horror story that would’ve kept Alfred Hitchcock up at night!   

10 Scary Retirement Statistics

Keeping with the theme of frightening things, here are the 10 scariest retirement statistics that’ll leave you sleeping with the light on. Are you ready? Let’s dive in.

37% of Americans have more credit card debt than retirement savings.

According to Ramsey’s State of Personal Finance report, more than a third of Americans (37%) have more credit card debt than retirement savings. That’s 90 million U.S. adults. That’s crazy! And we’re not even including other kinds of debt like student loans or auto loans in this equation. If you’re in that 37%, you’re setting yourself up for trouble down the line, especially in retirement—monster-sized trouble.

Social Security payments are less than $22,500 a year.

Thinking about relying on Social Security for retirement? Think again. In July 2024, most retired people got an average of $1,871 per month from Social Security.¹ That’s only around $22,450 a year. Do you think that’ll be enough for your retirement? We don’t either. In fact, even the Social Security Administration has said Social Security isn’t meant to replace all of your income.²

Only 61% of Americans own stocks.

Only 61% of Americans said they own stocks, which means 39% haven’t invested in the stock market at all. Yikes! But here’s some good news—that’s a small jump from 56% a few years back.³

So, while we’re headed in the right direction, we still have a lot of work to do. If you’re part of the 39%, it’s time to get started on your investing game! (That is, if you’re financially ready to invest.) If you’ve heard us say it once, you’ve heard us say it a thousand times: You need to build wealth!

38% of people in debt are either struggling or in crisis with their money.

According to research done by Ramsey Solutions, 38% of Americans who have debt say they’re either struggling financially or in crisis, compared to 22% of people without debt.

One of the biggest problems with debt is that it takes away of your most important wealth-building tool: your income. You see, every dollar you have to send to some bank or lender every month is one less dollar you can use to save and invest for the future. It’s no surprise, then, that people in debt are more likely to feel overwhelmed, worried and stressed than those without debt.

That’s why we recommend paying off all your debt (except the mortgage) with the debt snowball method before you even think about investing for retirement. The faster you get out of debt and free up hundreds (or even thousands) of dollars of your income, the more you’ll be able to invest and build wealth in the future.

78% of American workers are living paycheck to paycheck.

Forget Halloween. Every day is terrifying when you’re living paycheck to paycheck. And more than three-fourths of Americans are doing just that.⁴ In fact, research done by Ramsey also found that a third of people making over $100,000 a year are living paycheck to paycheck. Ay caramba.

How much will you need for retirement? Find out with this free tool!

How can you possibly build wealth and retire with a nice nest egg if your bank account keeps hitting zero? Even Freddy Krueger would shiver at this nightmare. Look, if this is you—put investing on hold . . . for now.

Right now, it's time to walk the Baby Steps, starting with putting away $1,000 for emergencies and paying off all debt except your home—with lots of intensity. You can do this!

22.4 million Americans can’t afford their rent.

Recent research from Harvard shows that half of all American renters are struggling to pay their rent. In fact, an all-time record of 22.4 million renters are spending more than 30% of their income on rent and utilities.⁵

If you’re having trouble fitting rent into your budget, it’s time to:

• Pause any investing
• Cut back on spending
• Increase your income
• Possibly find cheaper living arrangements

Remember, shelter is one of your Four Walls. That means you need to secure the roof above your head before you even start the Baby Steps—let alone invest for retirement. Do what you need to do to fix the problem so you can get back on track. You’ve got this!

Americans have over $1 trillion in credit card debt.

This will really send a chill down your spine—a study done by Ramsey Solutions found that 1 in 3 Americans say they’re relying on their credit cards more than normal, and 1 in 4 have maxed out a credit card in the last 90 days. In fact, as of 2024, the United States has crossed $1.1 trillion in credit card debt.⁶ Can you feel our blood pressure rising?

You might be thinking to yourself, So what? I’ll just invest for retirement and pay down my debt. No biggie, right? Well, now you sound like the guy whose brilliant idea is to check out that creepy noise from inside the spooky abandoned mansion. You’re looking for trouble.

Look, debt is stealing from you. Trying to save for retirement with debt is like running from Jason Voorhees. You probably won’t make it. As long as you have vampires—whoops, we meant credit card companies—draining your income every month, you’ll always feel behind.

Only 34% of non-retired people feel on track with their retirement savings.

Even though retirement is a top goal in America, 66% of folks feel behind on their retirement savings—a scary feeling.⁷ But (spoiler for the next stat) almost half of American workers haven't even figured out how much they need to save for retirement.

48% of workers haven’t calculated what they need to live in retirement.

Any big achievement—like funding your retirement—takes work. But almost half of Americans haven’t taken the time to figure out how much they’ll need to save up for their golden years.⁸ Does that scare you? It should!

But don’t panic. In just a few minutes, our free retirement assessment tool can help you calculate how much you’ll need in your nest egg to enjoy the kind of retirement you’ve always dreamed of—and what you’ll need to invest each month to get there.

40% of people have no one they turn to for retirement advice.

Ramsey’s research found that 4 in 10 Americans don’t have anyone they trust for financial advice, and this is especially a problem in younger generations. Trying to save for retirement without professional help is like wandering into a haunted house alone in the dark without a flashlight. Zoinks! No, thank you. Turn on the light and get connected with an investment pro.

Retirement Statistics to Give You Hope

Wow—after all those dark and dreary numbers, we bet you could use some positive news about retirement. Kind of like watching your favorite comedy after a scary movie so you don’t have nightmares. Well, here’s some good news according to Ramsey’s National Study of Millionaires: 

• 8 out of 10 millionaires invested in their company’s 401(k) to help them reach their net worth. You don’t have to hit the lottery, make risky single-stock investments, or inherit a fortune to retire a millionaire.

• 3 out of 4 millionaires said regular, consistent investing was the key to their success. And guess what: 79% didn’t receive an inheritance from their parents or other family members to get there.

• The top five careers of millionaires? Engineers, accountants, teachers, managers and attorneys. In fact, only 15% of millionaires held senior leadership roles (CEO, CFO, COO, etc.). No matter what your career is, you can build wealth and reach a seven-figure net worth over time.  

• 93% of millionaires said they got their wealth because they worked hard, not because they had big salaries. Anyone can and should be able to retire comfortably in America today.

You see? The American dream is alive and well and available. It’s never too late to change your financial picture.

Who Ya Gonna Call? A SmartVestor Pro!

Halloween comes and goes, but retirement planning is an ongoing priority. Your retirement years don’t have to be a troubling, frightening experience. It’s time to get rid of the fear. Take charge of your finances and make better decisions going forward.

If you’re scared to go at it on your own, find a financial advisor who’ll stick with you for the long haul and help you stay on track. If you need help looking for an investment pro, be sure to try our SmartVestor program. SmartVestor is a free way to get connected with financial advisors in your area who can help you plan for your retirement future.

Find a SmartVestor Pro today!

This article provides general guidelines about investing topics. Your situation may be unique. To discuss a plan for your situation, connect with a SmartVestor Pro. Ramsey Solutions is a paid, non-client promoter of participating Pros.