While there is no mandatory retirement age in the U.S. and it is illegal to force older workers to retire according to the Age Discrimination in Employment Act, the OECD’s Pensions at a Glance report suggests an effective labor market exit age of 65.2 for men and 65.3 for women in the United States in 2022.
One reason for the U.S. ranking 13th out of 39 OECD countries in terms of retirement age could be due to pensions not being sufficient to sustain a decent standard of living without additional private savings.
There is a clear generational gap when it comes to choosing the best way to save for retirement in the U.S.
Statista’s Florian Zandt highlights a Consumer Insight survey from 2022, showing that on average, a savings book or deposit is still the preferred method for many respondents, particularly among Baby Boomers (28 percent) and Gen Z (22 percent).
Older respondents heavily rely on overnight deposits, with 29 percent of survey participants investing in these specific types of deposits lasting from one day to the next.
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Interestingly, real estate is the top choice for retirement savings among survey respondents aged 18 to 29. Despite a nearly 30 percent increase in median house sale prices between the first quarters of 2020 and 2024.
Company pension plans are also popular among this age group. The only group with a popularity share below 20 percent is those born between 1965 and 1979.
Overall, trust in government pensions is low, followed closely by investing in commodities like precious metals. Both the youngest and oldest participants in the survey view these options as suitable, along with savings books and company pensions.
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