Using Census Bureau data, a new report from the National Institute on Retirement Security (NIRS) finds that homeowners aged 65 and over have accumulated on average $210,493 in retirement savings compared to $52,579 for renters of comparable age.
The report also finds that older homeowners with housing debt typically have higher retirement account balances.
Overall, the report notes that American workers lack access to employer-provided retirement plans, have minimal savings, and face growing tradeoffs between saving for retirement and meeting basic financial needs such as housing and student loan repayment.
“For example, the data indicate that among 55 to 64-year-olds, the median amount saved for retirement is only $30,000,” said Dan Doonan, NIRS executive director. “Even among those with savings, balances often are far too low to support a secure retirement.”
Additional highlights:
- Retirement savings represent about a quarter of financial assets on average for the typical working adult, while home equity represents about a third.
- Nearly a quarter of seniors (24.4 percent) have housing debt.
- Just over two-fifths of all seniors (41.1 percent) have positive retirement plan balances. The percentage rises to almost half (48.4 percent) for seniors with housing debt.
