25 Shocking but True Statistics About Retirement

By Christine Benz, Morningstar

Here are 25 shocking but true statistics about the state of retirement in the United States.

19: Percentage of U.S. workers participating in a defined-contribution plan, such as a 401(k), in 1980.

52: Percentage of workers participating in a defined-contribution plan in 2004.

$71,500: Average balance of Fidelity 401(k) account holders at the end of 2010, based on 11 million accounts.

$740,000: The amount of assets needed to deliver an annual income of $50,000 per year for 25 years, assuming a 5% rate of return and no inflation.

$1 million: The amount of income needed to deliver an annual income of $50,000 per year for 25 years, assuming a 5% rate of return and a 3% inflation rate.

$1.25 million: The amount of income needed to deliver an annual income of $50,000 per year for 25 years, assuming a 5% rate of return and a 5% inflation rate.

45: Percentage of retirees who do not factor inflation into their retirement planning.

13: Percentage of retirees who look 20 years or more into the future when planning for retirement.

21 and 17: Average number of years respectively, that women and men in the U.S. will be retired.

25: Percentage of 401(k) participants ages 56-65 who had more than 90 percent of the investments in equities at year-end 2007.

$1,000: Monthly Social Security benefit a retiree would receive if he begins collecting benefits this year, at age 62, assuming an annual income of $50,000.

$1,951: Monthly Social Security benefit if same retiree delays receipt of Social Security benefits until age 70.

72: Percentage of Social Security recipients who begin collecting benefits at age 62.

34: Percentage of retirees who rely on Social Security for 90% or more of their income needs during retirement.

40: Percentage of average earners wages that Social Security replaces.

80: Percentage rule of thumb for how much of one's pre-retirement income will be needed during retirement.

$230,000: Amount that a 65-year-old couple retiring in 2011 will need to pay for medical care throughout retirement.