Nearly half of those surveyed by GoBankingRates are completely unprepared for retirement, as reported in CNBC, “42% of Americans are at risk of retiring broke.” Combine that with longer life expectancies, and the prospect of a nation of aging workers who can’t afford to retire may significantly alter aging in America.
The percentage of adults with nothing saved has gone down. However, the percentage of those with $300,000 or more in a retirement fund has increased.
The top reason that most people cited for not saving, was because they simply didn't earn enough to save. The next reason given was that they were already struggling to pay bills, according to GoBankingRates. The personal finance site interviewed more than 1,000 adults online in February.
For those with little or no savings, a significant lack of proper investment income and planning and the fact they’re expected to live longer lives has made the concept of retiring practically impossible.
Another study cited in the article comes from United Income, a start-up that is applying big-data analysis to financial planning, says that older Americans are becoming more and more negative about their retirement and future economic prospects. Roughly 42% of Americans have fewer than $10,000 saved for when they retire. From 2016 to 2017, the percentage of Americans with $0 saved increased. But this year, it dropped significantly. Millennials are also guilty of not thinking about saving or planning. They are the generation most likely to have less than $10,000 saved for their retirement.
Retirement can feel very far away for many, or seem unachievable, yet the reality is, it will creep up on you before you know it. Even if you feel you do not earn enough to save, meet with an advisor who can help you formulate a plan. Remember, planning for retirement does not stop there, it also involves planning your estate, appointing a durable power of attorney, filling out an advanced healthcare directive, and many other things you may not have realized. So, if you are one of those Americans who has not started saving or planning for retirement, make it your goal this year to take those first steps and find experienced professionals who can help you plan practically for your retirement.
For more information on this and other estate planning topics, visit our website and schedule your consultation today!
Reference: CNBC (March 6, 2018) “42% of Americans are at risk of retiring broke”