How many Americans aren’t prepared for retirement?
One of the biggest challenges of retirement is saving enough money to last you for the rest of your life. Between savings, employer plans and investments, there are many options for making your financial future more secure. However, too few Americans begin saving while they are young or have enough put away to fund a successful retirement. Recent reports have shown that not all adults are ready for retirement, nor do they feel adequately prepared to leave the workforce.
Preparing for retirement
According to a new study from Bankrate.com, more than one-third of Americans (36 percent) have no savings for retirement. Not surprisingly, younger Americans had less savings, with 69 percent of 18 to 29 year olds without any savings. Of those between the ages of 30 and 49, 33 percent had no savings, while just 26 percent of 50 to 64 year olds said the same. Bankrate.com found that 14 percent of Americans 65 and older haven't saved anything for retirement. This figures are somewhat concerning, as many Americans may end up relying on Social Security benefits to pay for their retirement, though benefits alone are generally considered not to be enough.
Experts note that saving early is the best approach to create a retirement nest egg. According to the survey, millennials said they felt more secure for retirement, despite the fact that most had no savings to speak of yet. Furthermore, this group feels more secure in their jobs and financial future compared to any other age group.
"Regardless of age, there is no better time than the present to start saving for retirement," said Greg McBride, chief financial analyst of Bankrate.com. "The key to a successful retirement is to save early and aggressively, but even those on the cusp of their golden years should have some money allocated toward equities as opposed to all cash and bonds."
There are several areas where Americans appear to be more confident and optimistic compared to a year ago, including job security, net worth and current financial situation. As the survey shows that there is a large portion of the population that is not financially secure for retirement, more Americans reported feeling less confident about their savings compared to a year ago. The report pointed out that too many could be making the mistake of not starting to save early enough or making their saving goals more aggressive as retirement age approaches.
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