We’re getting older. But that’s not the ugly, unspoken truth. For the first time, Americans as a whole aren’t saving nearly enough for retirement.
According to data from Northwestern Mutual’s 2019 Planning & Progress Study, fifteen percent Americans have no retirement savings at all. For both Gen X-ers and baby boomers, 14% of survey respondents in each group have absolutely nothing put away for retirement years.
Only 17% of respondents say they have between $1 and $74,999 kept away for retirement, which falls short of the $1 million experts recommend.
For prime-age male and females (ages 25-54), it comes down to a huge disconnect between realizing they need to save more and taking substantial steps to do so.
Furthermore, only 10% of respondents are confident that they’ll have enough earmarked for retirement. On average, people say there’s a 45% chance they’ll run out of money in retirement. However, 41% say they haven’t taken any action to tackle this issue.
To live life comfortably in retirement, it’s imperative to start saving and investing as early as you can. One way to get started is by contributing a part of your paycheck directly into your employer’s 401(k) plan. If they don’t offer one, then you look into other retirement savings vehicles such as Roth IRA or traditional IRA.