Almost one-third of all Americans have no retirement savings, while 19 percent of Americans specifically aged 55 to 64 have nothing saved for their golden years. This is according to a recent report by the Federal Reserve Board.
According to a press release by the Fed:
Thirty-one percent of non-retired respondents reported having no retirement savings or pension, including 19 percent of those ages 55 to 64. Additionally, almost half of adults were not actively thinking about financial planning for retirement, with 24 percent saying they had given only a little thought to financial planning for their retirement and another 25 percent saying they had done no planning at all. Of those who have given at least some thought to retirement planning and plan to retire at some point, 25 percent didn’t know how they will pay their expenses in retirement.
Unfortunately, that’s not the whole picture on the state of American retirement savings. According to a 2012 Employee Benefits Research Institute (EBRI) report, just 14 percent of Americans are very confident they will be able to retire comfortably. 60% percent of Americans report that the value of their household savings and investments, not including owning homes and defined benefit plans, are less than $25,000. Furthermore, according to the EBRI, 56 percent of workers have not attempted to calculate how much they will need in savings and investments in order to have a comfortable retirement.
Of current retirees, three-fourths think they did not save enough and would have saved more if given the opportunity to do it over again. 35% of Americans don’t contribute to retirement accounts such as a 401(k) or IRA. One in six older Americans lives below the poverty line.
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What do you make of the current retirement and saving crisis? If you are retired, have you felt its effects? Are there political solutions to the problem- or is the real problem just a basic lack of will to save and invest on Americans’ part?
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