Market Size of Active Pre-retiree/retired population - United States
An estimated 12,313,046 American retirees are over the age of 60, have a net worth of over $200,000, and have a retirement savings plan. While data on the number of Americans who are within five years pre-retirement to seven years post-retirement was not available, we learned that 51% of Americans retire between the ages of 61 and 65, while another 12% retired in the 66-69 age range and 10% in the 70-74 age range. Data on the number of retirees who have at least one living child proved elusive.
To find relevant figures to respond to this query, we consulted the US Census Bureau, the US Bureau of Labor Statistics, the Federal Reserve, and news sources. Using figures compiled from these sources we were able to provide an estimate of the number of Americans who are over 60, have a net worth of over $200,000, and likely have a retirement plan. Despite extensive research, we were unable to find sufficient figures to triangulate data related to those who are five years pre- or seven years post-retirement, as well as those who have at least one living child.
NUMBER OF RETIRED AMERICANS 60 YEARS OF AGE OR OLDER
According to the US Census, there were 64,950,861 Americans 60 years of age or older in 2016. Some 71.7% of them were not in the labor force, which would equate to 46,569,767 (64,950,861 x .717).
The Bureau of Labor Statistics (BLS) breaks it down a bit further, though they use 65 and older as their age bracket. In a slightly dated report (2015), the BLS indicates two primary reasons for those in this age group not being in the labor force: retirement and disability. Their 2016 data shows that there were 25,624,000 people over the age of 65 who were not in the labor force and were not disabled. It notes that there were an additional 13,139,000 people over 65 who are not in the labor force because they are disabled. Therefore, adding these groups together, we get 38,763,000 Americans in the 65+ bracket who are not working, 33.9% of whom are disabled, rather than retired (13,139,000 / 38,763,000).
If we assume the same percentage of disabled non-workers applies to the 60+ group, we get 15,787,151 (46,569,767 x .339) who are not in the workforce due to disability, leaving 30,782,616 Americans who are over the age of 60 and retired (46,569,767 - 15,787,151).
NET WORTH STATISTICS
According to the Federal Reserve’s 2013 Survey of Consumer Finance, 50% of Americans age 65 or older have a net worth of $200,000 or higher. If we assume this percentage applies to retirees over 60, then we can estimate that approximately 15,391,308 retirees over the age of 60 have a net income of $200,000 or more (30,782,616 x .5).
Retired Americans bring in a collective income of $1.3 trillion, of which about 30% comes from pensions or retirement plans. Pensions are common among those over the age of 75 but are much less common for younger Americans. Retirees with higher income (over $50,000) get about 80% of their income from a retirement plan or pension, compared to 21% for low-income (under $25,000) retirees.
If we apply this 80% to the high net worth individuals we estimated earlier, we come to 12,313,046 retirees who are over the age of 60 and likely have a retirement savings plan.
THOSE WHO ARE FIVE YEARS PRE- AND SEVEN YEARS POST-RETIREMENT
The number of people who are 5 years pre- or 7-years post-retirement proved elusive. Despite an exhaustive search, I was unable to find statistics regarding this segment or data that would allow me to fully triangulate it. However, I found some relevant data that suggests how many people may be moving into retirement at various ages.
A December 2016 article in Money magazine states that 51% of Americans retire between the ages of 61 and 65, according to LIMRA Secure Retirement Institute data. The percentages of people retiring in older age ranges are much smaller:
• 12%: 66-69 years of age
• 10%: 70-74 years of age
• 4%: 75-79 years of age
• 5%: 80-84 years of age
• 2%: over 85 years of age
In conclusion, an estimated 12,313,046 American retirees are over the age of 60, have a net worth of over $200,000, and have a retirement savings plan. While data on the number of these retirees who are 5 years pre- to 7 years post-retirement proved elusive, we learned that 51% of Americans retire between the ages of 61 and 65. Data related to the number of retirees with living children was unavailable.