Americans Aren’t Saving Enough for Retirement: How to Avoid Being Part of the Problem.
Key Ideas
- Retirement savings statistics were grim before the recession, but they’re even worse now.
- It reveals the only solution for retirement savings that works reliably.
Are you on the path to a secure retirement?
Most people (unfortunately) don’t, and the latest retirement savings statistics prove it.
According to the Employee Benefit Research Institute, a massive loss of wealth from the market downturn in 2008 a difficult retirement planning situation much worse.
The latest research conducted by the Employee Benefits Research Institute shows that many workers are unsure whether to retire, and for good reason.
The results look promising at first glance: “The percentage of workers who are confident they have enough money for a comfortable retirement was at record lows between 2009 and 2013, but rose again in 2014 and 2015.”
Relating to:
How Does Your Financial Advisor Get 75% (Or More!) of Your Retirement Income? Video, PDF download or Audio.
However, this optimism is attributed to the increase in the number of employees participating in retirement plans. Those without retirement plans still can’t save enough:
- 32% of workers are not sure they are adequately prepared for retirement.
- 64% of workers say they are behind on saving for retirement.
- In 2009, 75% of employees were saving for retirement, but this rate dropped to 66% in 2012 and 67% in 2015; It remained almost unchanged in the 6-year period.
- 90% of those with a retirement plan (defined benefit, defined contribution, or IRA) are more likely to save for retirement than the 20% without a retirement plan.
- 57% of the total value of employees’ household savings and investments (excluding the value of their primary residence and defined benefit plans) is less than $25,000. Of this percentage, 28% have less than $1,000 in savings!
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It’s interesting to note that the recession had little to no impact on the savings habits of most Americans. Even though retirement confidence is weak, people are still not taking any steps to improve their situation. Many workers said they could save more, but I just didn’t commit..
Worse still, “Those who are unsure of their retirement prospects are also more likely to say they don’t know how much they need to save.” 48% of these workers have never even tried find out how much they need to save!
As a point of comparison, here are some surprising numbers from the 2009 study that compare with today’s numbers and show how little has changed:
- The average defined contribution plan balance (for those with defined contribution plans) was only $31,800 in 2007.
- The average individual retirement account and Keogh plan balance was $34,000 in 2007. Compare this to the fact that 57% of the workers mentioned above still have less than $25,000 in savings.
- Only 40.6 percent of families had an employment-based retirement plan. Unbelievable! This means that almost 60% of families have no employment-based retirement plan and have less than the meager figures above suggest. Ahh!
Let’s be clear: You can’t retire in America At something even remotely close to $25,000.00. Multiplying that number by 10 doesn’t even get you close. Simply put, people are constantly not being able to build sufficient retirement savings.
It doesn’t matter whether you view these statistics in 2009 or again 15 years later. The main point is this: people actually don’t take the necessary precautions to secure their retirement.
Something Must Change Or There Will Be a Retirement Crisis
Saving for retirement is one of the most important financial responsibilities you face. I know this is confusing and a big mountain to climb (and the statistics are proof of that), but that’s why I wrote the book How Much Is Enough to Retire?.
It’s a short read that teaches you exactly what you need to know to set and achieve a realistic retirement goal. You don’t have to be part of these frightening statistics: there is a solution.
Your first action step is to read the book How Much Is Enough to Retire? Yes, it’s a self-serving statement, but it will point you in the right direction, and research shows that simply calculating how much you have to retire results in taking positive goal-directed action.
Additionally, even though you know what you need to do to secure your retirement, you still haven’t taken the necessary steps. then coaching might be a smart side step for you.
Always remember that you will never get a second chance to secure your retirement. The longer you wait, the harder it will be to achieve.
Anyone can learn to build a secure retirement, and you don’t need a financial advisor.
my course, Anticipatory Wealth PlanningIt has been called “the best financial education on the internet” and provides all the information you need to build the life and retirement of your dreams.
