45 Percent Of Americans Don’t Have A Cent Saved For Retirement
This is sobering news. According to a recent study, a whopping 40 million (or 45 percent) of working Americans have not saved even one penny for retirement.
The study, conducted by the nonprofit National Institute on Retirement Security, also found that of those who do save, they have an average of merely $2,500 socked away. This represents a 16.7 percent drop from 2013. And for the group closest tor retirement, people aged 55 to 64, as the median savings was only $14,500.
“It’s no wonder Americans believe the nation faces a retirement crisis [because] the evidence is irrefutable that the hope of retirement is out of reach for millions of middle-class Americans,” noted Diane Oakley, NIRS executive director.
Americans just aren’t getting ready for their golden years. In fact, 62 percent of those households with a retirement savings have saved less than one year’s annual income, which of course will make your retirement unsustainable.
The report by NIRS is based on an analysis of the Survey of Consumer Finances from the U.S. Federal Reserve System, reports Financial Advisor.
According to Oakley, one of the reasons Americans are so bad at saving for retirement is a lack of access to retirement plans. This is especially true for lower-income families.
“Access to workplace retirement plans could be expanded by making it easier for private employers to sponsor defined benefit pensions. Finally, expanding the Saver’s Credit and making it refundable could help boost the retirement savings for lower-income families,” says the NIRS, which also calls for a strengthening of the social security system particularly to include added benefits for vulnerable families.
How are you saving for your retirement?