The Retirement Savings Gap Most Americans Don’t See Coming

Presented by Mutual of Omaha Mortgage

The numbers tell an uncomfortable story.

The median retirement savings for Americans aged 65–74 is just $200,000 and that figure drops to $130,000 for those 75 and older as withdrawals and rising costs take hold. Meanwhile, Social Security replaces only about 40% of pre-retirement income on average. Housing alone consumes 35% of the typical retiree’s budget.

It adds up fast. And for most people, it doesn’t add up well.

$200K

Median retirement savings for Americans aged 65–74

~40%

Share of pre-retirement income Social Security replaces on average

35%

Of the typical retiree’s budget consumed by housing alone

The Gap Is Wider Than People Expect

70% of retirees say they wish they had saved more and started earlier. Nearly half of non-retired Americans don’t expect to have enough saved when the time comes. And 36% of retirees have already faced unexpected expenses since retiring, with most carrying less than three months of emergency savings.

Healthcare makes it worse. More than 70% of people who live past 65 will need some form of long-term care. The median cost of assisted living now exceeds $5,500 per month — a number that can hollow out even a carefully built nest egg.

The Asset Retirement Plans Can Miss

Here’s what the standard retirement conversation may not account for:

Home equity.

Millions of Americans over 62 have spent decades building equity in their homes — often their single largest asset — while their retirement planning focused on savings accounts and Social Security. That equity sits largely untouched, even as monthly budgets get tighter.

For homeowners who qualify, there may be a way to access a meaningful portion of that equity:

Without selling your home
Without a monthly mortgage payment*
Without giving up ownership*

Find Out If You Qualify

Mutual of Omaha Mortgage has helped thousands of homeowners 62 and older understand their options. There’s no cost to check, and for many, the answer changes the retirement picture entirely.

Find Out What Options May Be Available to You

*Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement.