MARKET WATCH
Nothing. That’s not much to fall back on in retirement.
As many as 28% of Americans have nothing saved for their retirement, 39% aren’t contributing to a retirement fund and another 30% don’t think they’ll ever be able to retire. That’s according to a new GoBankingRates survey.
Between 25% and 35% of all demographics between the ages of 18 and 64 years old report having nothing saved for retirement, the survey said.
How much is needed for a secure retirement varies by person and situation, of course. But a study from Northwestern Mutual in 2022 found that U.S. adults anticipate they will need $1.25 million to retire comfortably, while a 2023 Schroders survey put the figure at about $1.1 million.
GoBankingRates, meanwhile, found that a quarter of the 1,000 people surveyed think they can retire with less than $500,000. Another quarter believes it will take somewhere between half a million and a million dollars, while another 30% expect their retirement to cost higher in the seven figure-range.
So why aren’t people saving for retirement? Some don’t have access to retirement-savings plans, although participation is low even when the accounts are available: The Bureau of Labor Statistics says 69% of private industry workers have access to an employer-based retirement plan but only 52% participate.
Other obstacles include inflation, debt, as well as low financial literacy, starting saving too late, being inconsistent in making contributions, and spending on wants without seeing saving for retirement as a need, GoBankingRates said.
