At this rate, retirement is more of a fantasy than a reality for many people in this country.
About 42 percent of Americans have less than $10,000 saved for when they retire, according to a study by GoBankingRates.
The No. 1 reason most people cited for not stashing more away was because they didn’t earn enough to save, followed by the fact that they were already struggling to pay bills, GoBankRates said. The personal finance site polled more than 1,000 adults online in February.
For those with little or no savings, a serious lack of proper investment income and planning, coupled with a longer life expectancy, has destroyed any retirement expectations, and they will likely work until the day they die.
Although millennials are most likely to have less than $10,000 saved, older Americans are also becoming steadily more pessimistic about their future economic prospects, according to a separate study by United Income, a start-up that aims to apply big-data analysis to financial planning.
How Much Does the Average American Have Saved for Retirement?
GOBankingRates polled adults across the U.S. using three Google Consumer Surveys to find out how much the average American has saved for retirement. Each survey targeted a specific age group — millennials, Generation X and baby boomers — and included about 1,000 respondents per group.
Each age group was asked the same question: “By your best estimate, how much money do you have saved for retirement?”
Respondents could select one of the following options:
– Less than $10,000
– $10,000 to $49,999
– $50,000 to $99,999
– $100,000 to $199,999
– $200,000 to $299,999
– $300,000 or more
The 2018 Retirement Savings survey found that 42 percent of Americans have less than $10,000 saved. If they don’t boost their savings, they’ll likely never retire, and work until the day they die, because that’s not enough to cover a year’s worth of expenses. On average, adults 65 and older spend almost $46,000 a year, according to the Bureau of Labor Statistics.
Included in that 42 percent with less than $10,000 saved is the 14 percent of respondents with absolutely nothing saved for retirement. This group could be at the most risk of retiring broke if they don’t start taking steps to catch up on retirement savings. To continue reading this study, click here.
Mr Americana, Overpasses News Desk
March 6th, 2018