Can You Believe That Half of Americans Have Saved Nothing for Retirement?

In its recent article, CNBC found that for almost half of Americans, retiring with a nest egg is a fantasy, not a plan. Approximately 42% of Americans have less than $10,000 saved for retirement according to a study by GoBankingRates.

The percentage of Americans with no savings increased between 2016 and 2017 but dropped significantly in 2018. The generation most likely to have less than $10,000 saved was Millennials, but even older groups face mounting economic pessimism, according to a study by United Income.

The biggest reason for not saving? People simply not earning enough. Second? Already struggling to pay bills. This is according to GoBankingRates’ survey of more than a thousand adults. A small minority (5.7%) prioritized paying down debt over retirement savings, and just over 10% of those surveyed said they “won’t need retirement savings.” Another segment around 10% had to use retirement savings for an emergency.

Changes to investment income and longer life expectancy mean that financial planning is more important than ever and planning for your future now, even in small amounts, can make retirement possible.

Reference: CNBC (March 6, 2018) “42% of Americans are at risk of retiring broke”