12 February Retirement Facts - Part 3 February 12, 2020 By Editor Industry News LIMRA, retirement, seniors 0 Retirement Facts: Low-Net-Worth: Under $100k We took a break to bring physical activity to attention. This week we’re back and covering the retirement facts on the largest reported wealth segment – “low-net-worth.” The LIMRA Secure Retirement Institute defines low-net-worth as assets under $100,000. Of the total 125,981,701 households the Institute surveyed in 2017, 69% of them fell into this “low-net-worth: under 100k” wealth segment. That’s 87,342,027 million households total – including 2 million households with zero financial assets. The Institute’s focused look on the low-net-worth segment excluded those 2 million households and covered average financial assets, non-financial assets, debt, and net worth. Non-financial assets include vehicles, other residential property excluding primary residence, equity in non-residential property, business equity, and other assets. Net worth is the sum of assets (what is owned) minus liabilities (what is owed). Retirement Demographics Of the 85,392,092 households counted in this section, 3.7 million households were partially retired and 15.4 million were fully retired. Fully retired households had an average of: $18,700 in financial assets $185,662 in non-financial assets $48,500 in debt $156,118 net worth The average debt for fully retired households was around 2.5 times more than the average financial assets. Partially retired households had an average of: $22,889 in financial assets $210,488 in non-financial assets $87,836 in debt $162,638 net worth The average debt for partially retired households was almost 4 times more than the average financial assets. Age Demographics: Aged 35 or Younger Least in average financial assets at $15,510 Least in average non-financial assets at $91,360 Mid-range with average debt at $75,695 Least in average net worth at $54,475 Aged 36 to 49 Average financial assets at $19,912 Second lowest average non-financial assets at $170,226 Most in average debt at $102,566 Second lowest net-worth at $112,884 Aged 50 to 59 Average financial assets at $19,368 Mid-range non-financial assets at $187,094 Second highest debt at $86,938 Mid-range net-worth at $133,526 Aged 60 to 69 Average financial assets at $19,607 Second highest non-financial assets at $191,851 Second lowest debt at $74,891 Second highest net-worth at $142,567 Aged 70 or Older Average financial assets at $19,702 Highest average non-financial assets at $203,264 Least in average debt at $49,195 Highest net-worth at $175,936 Debt Overall, 65% of fully retired households (10,043,375 million) and 82% of partially retired households (3,052,450 million) had some type of debt. The average amount of debt for partially retired households landed at approximately $87,800 – nearly twice as much as average for fully retired households, $48,500. The four main types of debt are mortgage, credit card, student loan, and vehicle loan debt. Mortgage Debt 45% (4,821,872 million) of fully retired households had mortgage debt, with an average debt amount of $99,957. 65% (1,967,793 million) of partially retired households had mortgage debt, with an average debt amount of $77,409. Credit Card Debt 43% (6,594,640 million) of fully retired households had credit card debt, with an average debt amount of $4,049. 57% (2,114,224 million) of partially retired households had credit card debt, with an average debt amount of $6,175. Student Loan Debt 2% (357,889) of fully retired households had student loan debt, with an average debt amount of $35,557. 12% (435,778) of partially retired households had student loan debt, with an average debt amount of $29,688. Vehicle Loan Debt 18% (2,771,419 million) of fully retired households had vehicle debt, with an average debt amount of $12,739. 46% (1,697,681 million) of partially retired households had vehicle debt, with an average debt amount of $16,524. Related Posts Retirement Facts - Part 2 Retirement Facts Part 2 focuses on some demographics of retirement – marital status, age groups, and wealth segments. Retirement Facts - Part 4 We're finishing up our series with Retirement Facts Par 4 on the LIMRA Secure Retirement Institute's 2019 Fact Book on Retirement. Learn about the smallest and richest reported wealth segment - mega-millionaires. Retirement Facts - Part 1 We're looking at the facts and figures of retirement in this first post of our Retirement Facts series. Unpacking Medicare Supplement: Part 2 Maggie continues her quest to learn more about healthcare at age 65 and beyond. In Part 2 of our blog series, she discovers the myriad of details that make up this supplemental insurance. 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