Categorized | Retirement, Saving Money

36% Unprepared for Retirement


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A new study has been released that 36% of all US workers are severely unprepared for retirement. 36% is roughly 1/3 of the US workforce which has underfunded their chances for retirement. The study has shown that roughly 14% of people over the age of 65 have little to no money saved up for retirement.

Lack of Savingsretirement 1

Many people would attribute the bad economy as the reason for a lack of retirement funding. Due to the failing economy and the uncertainty of the job market, many people had to dip into their retirement funding in order to remain afloat. “Regardless of your age, there is no better time than the present to start saving for your retirement. The key to a successful retirement is t save early and aggressively.” said Greg McBride who is the chief financial analyst for Bankrate.com. Many of those who are lacking when it comes to a safe amount of money set aside for retirement might have fallen for the lack of a plausible or even possible retirement in view. Unfortunately for most, those that have not set aside any type of money to live on after the working years are over. Many people who are most affected by this now recently released study are finding themselves feeling that the time for saving for retirement has long passed, but the time for saving for retirement is never too late. With economists believing that the US economy is slowly getting better and the stock market is gradually gaining ground, there is no better time than now to start saving for retirement. When it comes to retirement savings, if you are standing still you are not gaining any type of foothold on being able to enjoy your golden years.

The study’s research has confirmed that of those polled, about 36% of workers have less than a thousand dollars saved up for retirement. What is worse are the ever increasing numbers of US workers that have less than the desired amount of money put aside for retirement. The study concluded that less than 60% of all US workers have been able to put aside more than 25,000 dollars towards their retirement funding. What is most terrifying is that the study takes into consideration pension plans and 401k’s which have been offered as a base for various employees to help fund retirement savings. That being said, many have either failed to contribute to their retirement savings plans for worse have had to tap into them, paying penalties for use or over drafting their retirement funding in order to supplement income and maintain either a mortgage or other regularly occurring bills and debt.

Satisfaction Levels of Savingsretirement 3

The study found that of all the people polled in this research when compared to how they felt a year ago, roughly 32% were uncomfortable with the amount of money that has been saved and put away for their retirement. Only 16% of those polled were actually happy or comfortable with the amount of money they had been able to put aside towards their retirement. Unfortunately for many people, the amount of money that has been saved and put aside for retirement isn’t strictly being saved just for retirement. Many people have in essence turned their rainy day fund and their retirement funds into a general purpose fund in which only a fraction of what should be saved on a weekly or monthly basis is being saved and spending happens more frequently than it should.

Most people regardless of this study would tell you when pressed that they are unimpressed when it comes to the amount of money that they have been able to save away in the last year. Let’s face it, the economy might be getting better but it is doing so in such a slow and gradual pace that many of us have yet to feel it. Worse yet, the cost of the standard of living has been rising the entire time and the wages or time in hasn’t yet caught up. The bills keep coming in, so with all this going on in the background it is easy to understand why one’s savings for retirement might be pushed on the backburner when it comes to the most pressing issues to be dealt with first. The most important factor when it comes to retirement funding, is to participate in it almost religiously. Even if it comes down to taking 20 dollars out of your pay every week and throwing it into a savings account that you don’t have immediate access to in order to stop yourself from spending it.

The best advice that I was given was by my father. He told me that you work to live, you shouldn’t live to work. If you truly want to enjoy your golden years, distance yourself from 36% of the country that lost their way in retirement funding and start saving today so you can enjoy your tomorrow.

 

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