Industry News

On November 7, 2024, the Employee Benefit Research Institute (EBRI) released its issue brief, 2024 Spending in Retirement Survey. The brief examines the changes in the spending patterns of retirees and their well-being since retirement. The survey included about 3,600 American retirees between the ages of 62 and 75.

Some of the key findings include:

• Among the 58% of Americans that retired earlier than expected, the most common reasons for retiring were having a health problem or disability (38%) and organizational changes at their company (23%);
• In 2024, outstanding credit card debt increased substantially compared with 2022 and 2020. About 68% of retirees reported having outstanding credit card debt, compared with 40% in 2022 and 43% in 2020;
• Individual retirement accounts (IRAs) were cited as a current income source for 20% of retirees, while 401(k)-like workplace retirement plans were an income source for 17% of retirees. The median share of income generated by these accounts was 10% for IRAs and 15% for 401(k)-like accounts;
• In 2022, more retirees (31%) indicated that their spending is much higher or slightly higher than they can afford in 2024 (up from 27% in 2022 and 17% in 2020); and
• About 50% of the retirees reported they saved less than what was needed for retirement. About 33% indicated that they saved the right amount and 17% saved more than what was needed.

The summary is available here.