Almost 30% of Americans Haven’t Saved for Retirement

In a survey from GoBankingRates, that surveyed more than 1,000 Americans, 28% reported that they had nothing saved for their retirement years. Almost 40% of those surveyed, at 39%, aren’t contributing to a retirement fund at all – so it’s not shocking that 30% of those surveyed feel that they won’t be able to ever retire.

Retirement Readiness Impacts All Ages

The lack of retirement planning isn’t solely an issue for one age group. For those aged 34 to 44, 35% had no long-term retirement savings while in the 45-54 age group, 33% had the same problem. In the 18-24 bracket, 28% were lacking a retirement fund while 25% of those aged 55-64 were. While the 18-24 group has some time to begin saving and let compounding interest work for them, the older age brackets may not have that same advantage.

There are several potential contributing factors ranging from a lack of access to workplace retirement plans (although 73% of American workers have access to a plan according to the Bureau of Labor Statistics) to economic factors like the high cost of living.

How to Help

Much of the underlying problem seems to be a lack of financial literacy surrounding retirement planning. While there may not be much we can do about economic factors like the high cost of living, we can collectively work to improve financial literacy and educate people about the importance of planning for retirement – especially when it comes to children and young people. Helping children and young adults understand the basics of budgeting, and how compounding interest works over time, can only help to benefit them in the long run when it comes to their retirement plans.

For your clients who may be behind in retirement savings, good financial planning and a realistic outlook on their situation may be most helpful.