This is Our New REALITY. What Did You THINK Was Going to Happen!?

so how do you compare to other Americans financially will you be prepared to retire comfortably now this is a very concerning question that I've been receiving more and more lately and today I'm going to share with you guys some information that I think you're going to find very interesting you know like how much does the average person get in Social Security SSI and SSDI payments how much money does the average person have saved when does the average person retire you know things like that now be sure to stay until the end because one of the things that I'm going to share with you guys is over the last 40 years what happened to the average retirement age and I think you're going to be very surprised when you hear the numbers and we're going to talk about that and what you can do to improve your financial standing I was really shocked by this information so let's go and get started all right so one of the most common questions that people ask about this particular topic all the time you know is what is the average American making what is the average salary now the average salary is about a thousand dollars a week and if you think about a 40 hour work week it's a little over a thousand dollars a week so it's closer to about 26 dollars an hour which is what the average Amer American is making and that's anyone over 18 years old so there are definitely some lower paid entry-level positions in there but there's also some pretty higher paid positions you know after people build up their skill sets so again the median individual salary for a full-time worker now this is the median which is different from the average right so average you know if you had 99 people that were all making say fifty thousand dollars a year then the average would be fifty thousand dollars but if you added like one more person and let's just say that person happened to be Bill Gates or Elon Musk to the list then you're going to dramatically skew the average but they're not going to dramatically skew the median so the median is half the people make more and half of the people make less and so that's why again you know I decided to share the median and again that's a thousand dollars a week now what is the median amount that Americans have saved for retirement and this is for all the people over the age of 18 years old that have at least one bank account so for Americans without bank accounts without brokerage accounts without investment accounts they're not going to show up in this data but the average American has saved 65 five thousand dollars either saved in a bank account or saved in an investment brokerage account so the average person over the age of 18 years old that has an account that has a bank account the average American has 65 000 saved and you know what this is actually a very scary number when you think about how much it actually takes to be able to retire now I would like to hope that the viewers of my channel are doing a whole lot better than this but again I just wanted to share what the numbers are all right so Social Security what does the average American get in Social Security benefits well according to the Social Security Administration the median American payment from Social Security once they retire is one thousand five hundred fifty dollars so right around twenty one thousand dollars a year now again I should have said you know this is the median now this is not the average this is not the median household this is the average person and you can find out what your likely payment is going to be by going to the Social Security administration's website they also send you your social security statement where you can kind of get a feel for where you're at retirement age right now based on your work history based on your previous salary history and what you would likely be getting paid all right so the average spending is 67 000 a year and the largest expense of that is coming from housing and housing tends to be just under two thousand dollars it's actually nineteen hundred dollars a month transportation is actually the second largest expense and that is just under a thousand dollars per month it's actually nine hundred dollars a month and then food ends up being about 700 per month and about sixty to seventy percent of that is actually spent at home the other is spent eating out so that's the average spending and you can see if the average American worker is making a thousand dollars a week and the average spending is sixty seven thousand dollars you can see how it's getting harder and harder in America just to kind of get ahead to save and just even survive these numbers are real so you have to ask yourself are you tired of living paycheck to paycheck dreaming of the day when you can actually retire comfortably and spend more time with your loved ones do you feel like there's just never enough time in a day to read the books that could actually help you to Achieve Financial Freedom that's where audible comes in 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releases with audible's newly included selection of titles you are for sure to discover new favorites and new format like the exclusive words plus music series or podcast but don't take my word for it and now you can try Audible for free for 30 days using the link in the description Down Below in this video and as a member you'll have the opportunity to choose one title per month to keep with full access of the growing selection of included audiobooks audible originals and podcasts you can download or listen to included titles as much as you want making it easier than ever to fit learning and personal development into your busy schedule so what are you waiting for sign up for your free 30-day trial of audible today and start listening to the books that can change your life and help you to achieve your Financial Freedom goals with hundreds of thousands of titles to choose from and new formats being added all the time Audible has something for everyone I just love good quality entertainment don't miss out on the opportunity to transform your life and achieve the Financial Freedom that you deserve click the link in the description down below and start your free 30-day trial of audible today but you know I think the area that most people can start saving money without actually feeling the sacrifice too much might be with the car right now I'd be surprised if my transportation and that includes your car insurance the gasoline that includes maintenance but I will be really surprised if it's over 500 a month for me simply because I don't mind buying used cars now it also helps that I don't have a car payment I don't mind buying a quality used car that's a couple years old with 40 50 000 miles on it still under bumper to bumper warranty or powertrain warranty I like for that steep depreciation to go away and then I like driving my cars for a while you know keeping them well maintained I also choose certain makes and models because they have an excellent reputation for reliability build quality and having a lower rate of depreciation just drop me a comment down below if you'd like to know the types of cars that I like to buy so that I can get deep discounts on and that lasts forever hit me up in the comments down below you guys and I don't share this because I think my way is the best way I just think that for a lot of us we could start saving money maybe 400 bucks we could start saving 400 a month which would be about five thousand dollars a year and you can see based on a fifty thousand dollar median individual income that's saving 5000 a year is a 10 savings rate that's a pretty good start so just give that some thought it might not work for you but it might I just like to share good information I hope this helps okay the median household net worth now household net worth is different from your savings savings is what you have in your retirement account in your bank account stuff like that but your net worth and let me use an example is the value of your assets minus the value of your liability so if you have a 400 000 house and you owe three hundred thousand dollars on that if that was your only asset and your only debt your only liability then it would be your 400 000 house minus your 300 000 mortgage so your net worth which would be the difference would be a hundred thousand dollars so I hope that makes sense so again the median household not the individual but the median household net worth is a hundred and twenty two thousand dollars and how does that break out by age I think a lot of people are going to find this super interesting hopefully as we get older we start building up our net worth we've had a chance to save up for a down payment for a house we've had a chance to buy a house and I mentioned the house just because that's how a lot of us start saving building up our net worth with a house so as we get older hopefully we can buy a house and hopefully we can start paying it down and hopefully the house appreciates now here's how the numbers break down for people that are under 35 years of age so the median household net worth not individual but the median household net worth is fifteen thousand dollars now if you're 35 to 44 years old the median household net worth is ninety one thousand dollars so now you're approaching that hundred thousand dollar Mark okay so 45 to 54 is 168 000 now in your 40s is when you want that asset base to really start growing so that you have several decades before you retire for that money to really start working harder for you building passive income and that way they're putting more dollar bills into your bank account now I hope that makes sense so as your net worth builds as your retirement savings builds as that starts to grow and compound it can actually increase the value of your account the value of your net worth more than the money that you're actually putting into the account now again 45 to 54 years old is 168 thousand dollar median household net worth now 55 to 64. you can really see how it continues to tick up to two hundred and twelve thousand dollars net worth then you got 65 to 74 years old at 266 000. so that's how the median household net worth not individual but household net worth averages out to 122 000 but it tops out at 65 to 74 years old and be sure to stay to the end because we got one more data point that I'm going to share with you guys now what's happened with the average retirement age in the United States and for me it was eye-opening it was shocking so definitely stay tuned by the way if you like this video and if you found this information helpful just take a quick second hit the like button for me really does help other people find these videos also leave me a comment I love reading you guys comments appreciate that you guys all right so let's keep going so what is the average savings rate in the United States now the average savings rate in the United States is six percent and I think you know there's a rule of thumb a lot of us have grown up with that said you know I think our parents might have this be good with your money and save 10 or whatever you earn and I think that's a pretty good place to start now obviously the average American at six percent is below that but I think and I know it's aspirational I think 20 is a better goal a better aspirational goal for us to have and I know a lot of you guys might be thinking how am I ever going to start saving 20 that's a big number and I think that there's two ways for most of us that are already working I think one way to look at this is to consider your raises now as you get a raise there is money that you'll spend for your current self and money that you'll save for your future self so think about your raise as half for you today and the other half for you in the future hopefully this makes sense now additionally if you're a recent college grad or just learn to craft and landed your first job where you're starting to make what we call real money consider not increasing your lifestyle all the way up to what your current salary can afford you were living as a poor student for a while so you could probably step your lifestyle up quite a bit and it'll still feel great without starting to spend all of what you make okay so hopefully that's helpful now the last thing I want to share with you guys which I shared earlier about the car payment is that buying a used car instead of a new car and keeping a car a couple more years if we've already bought a used car this can really help us out so those are my ideas on saving more now again the average American Savings rate is six percent of what they make okay so now on to what I promise so the average retirement age now I graduated in 1998 so I know things have changed a little bit but I got some information from two different sources both Forbes and Yahoo finance so what is the average retirement age for men well currently it is 65 years old and for women it's 62 years old at least according to Forbes Magazine and that's currently you know what it is right now so again 65 years old for men and 62 years old for women but I was interested like what was the retirement rate 30 or 40 years ago so I found some data on Yahoo finance from 1986 for Americans so in 1986 the average age for retirement for men was 62 years old and for women it was 57 years old so you can see for men it's gone from the average retirement age of 62 to E5 and for women it's gone from the average retirement age of 57 back then all the way up to age 62 now so that's a big difference and I think that there's a couple of factors at play here so one is hopefully that we're healthier and that we don't feel the need to retire too soon now of course if you're in a job where you're doing hard physical labor or you're on your feet all day long then you know your body can only do so much so hopefully the reason that these folks in these situations that are working longer is that they're healthier and that they just don't mind working more years now unfortunately I suspect that part of this is that you know it's just harder to make it here in America today for the average family now I think that there's really becoming a dichotomy here there are other office workers the knowledge workers that have done really well and then the service economy that has lagged unfortunately behind that so I think that there's two factors at play here so again in 1986 men were retiring at 62 years old but now the retirement age for men is 65 on average and in 1986 women were retiring at 57 but now more of them are retiring at two so five more working years that's a big difference and I just want to close out with this one if you're 60 years old you know I really want you guys to start thinking about how you're spending your time I want you to think about you know the cost of working one more year now for many people that's just a reality you know you got to do what you got to do now if you agree drop me a quick comment and say amen and while you guys are down there don't forget to check out the hundreds of thousands of titles available on Audible members also get full access to a growing selection of included audio books audible originals and podcasts you can download or listen to audible included titles as much as you want so be sure to get your free 30-day trial of audible by clicking the link in the description down below this video I just want to thank you guys so much for watching and I'm Gonna Catch You guys on the next one be safe