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Most people have very little tucked away for retirement, and many aren’t even trying to figure out how much they’ll need later in life, a new national survey reveals.
About 36% of workers have less than $1,000 in savings and investments that could be used for retirement, not counting their primary residence or defined benefits plans such as traditional pensions, and 60% of workers have less than $25,000, according to a telephone survey of 1,000 workers and 501 retirees from the non-profit Employee Benefit Research Institute and Greenwald and Associates.
Only 44% say they or their spouses have tried to calculate how much money they’ll need to save by the time they retire so that they can live comfortably in their golden years, the survey shows. Workers who have done calculations on what they need to save tend to have higher levels of savings than those who haven’t crunched the numbers.
“There’s an incredible difference between those lucky enough to have a retirement plan and those who don’t,” says Jack VanDerhei, the institute’s research director and co-author of the 2014 Retirement Confidence Survey. “What’s really striking is that 73% of those without a retirement plan, such as an IRA, 401(k) or 403(b), have less than $1,000 in savings and investments.”
The reason defined benefits weren’t included in the total is most people don’t know how much those are worth, he says.
Many people realize that they are not on track in saving for retirement, and the two most important reasons they give for not saving more are cost of living and day-to-day expenses, VanDerhei says.
People’s confidence that they’ll have a comfortable retirement has risen slightly after record lows of the last five years, with 18% of workers in 2014 saying they are very confident they can retire comfortably, up from 13% who were very confident in 2013. Meanwhile, 24% are not at all confident they have enough saved for a comfortable retirement, about the same as 2013.
Retirement confidence is present mostly in people with higher incomes and in those with retirement plans, VanDerhei says.
The survey “highlights the impending retirement crisis that we will face over the next 20 years,” says Mark Fried, president of TFG Wealth Management in Newtown, Pa. “When I see these numbers I have ask the question: How did we get here? We need more financial education in the schools, in the media, in the workplace.”
If possible, people 40 and older should try to save up to 20% of their income, he says. “If you can’t afford to do that right now then set this as a target, and as you get annual raises put aside part of each raise until you reach the 20% number,” Fried says.
Invest in your company’s retirement account up to the match. One of the best ways to increase your retirement savings is to take advantage of your employer match if you have one, he says.
John Piershale, a certified financial planner at Piershale Financial Group of Crystal Lake, Ill., says: “Try to imagine how much you are going to need to have saved up to last you 20 to 30 years during retirement. The only way you can figure that out is do some retirement calculations. We help clients figure this out.”
If people are way behind in saving for retirement, they may need to work longer at their current job or get a second job to help fill the savings gap. Piershale says. “If you had the idea that you were going to retire at 62 or 65, and you don’t have enough saved up, then you have to keep working.”
Other survey findings:
• Debt is weighing heavily on many people, with 58% of workers and 44% of retirees saying they have a problem with their level of debt.
• Like workers, many retirees are also short on funds, with 58% of them having less than $25,000 in savings and investments, not counting their primary residence or defined benefits plans (traditional pensions); and 29% having less than $1,000.
• Although 65% of workers plan to work for pay in retirement, only 27% of retirees say they are working for pay during their golden years.
Total savings and investments reported by workers, not including value of primary residence or defined benefit plans such as a traditional pension.
Less than $1,000, 36%
$1,000 to $9,999, 16%
$10,000 to $24,999, 8%
$25,000 to $49,999, 9%
$50,000 to $99,999, 9%
$100,000 to $249,999, 11%
$250,000 or more, 11%
Total savings and investments reported by retirees, not including value of primary residence or defined benefit plans such as traditional pensions:
Less than $1,000, 29%
$1,000 to $9,999, 17%
$10,000 to $24,999, 12%
$25,000 to $49,999, 8%
$50,000 to $99,999, 7%
$100,000 to $249,999, 11%
$250,000 or more, 17%
Source: Employee Benefit Research Institute
Just HAVE to ask…
WHAT RETIREMENT?
can’t save frn’s as they fall in value every minute you hold them, buttcoin electronic system to the rescue!
oh, wait, metal is the historic ponzi and that game is rigged too.
tally sticks, tally ho! have tree limbs with notches will you trade for a steak?
If $1000 won’t do it, then $100,000 won’t either.
It doesn’t matter. Until these SOB’s are done, the money you have saved will be fancy ass wipes. You better have precious metals. They’re working on that too!
I am an Australian and have totally given up on governments and banks manipulating markets with their corrupt management of everyones superannuation. The retirement age is now approaching 70 and they claim it could go to 80 as the governments can no longer afford to pay for it. They are trying desperately to get their hands on your money. In reality your only option is to buy real estate or precious metals. I moved to the Philippines and bought a house for $7000 and built extensions for another $3000. It beats paying an extortionate $400,000 for a house in my own country. All we seem to be doing is working to pay for rent and food. Its getting rediculous.
The banks give you 0.2% on your savings and lend your money out at 5% to 20%. If the governments are so broke, why not super tax the banks
“In reality your only option is to buy real estate or precious metals.”
Sorry, Dirk, but that’s two options, and neither one is the best available to us. First off, although you can ‘buy’ real estate, you will not actually own it UNLESS you receive an allodial deed (title). Otherwise you are merely a tenant, paying rent in the form of ‘property taxes’. I’m not familiar with the laws concerning property ‘ownership’ in Australia (btw, my favorite overseas city is Cairns – loved it), but being that it has a Rothschild central bank as most countries do, I imagine they’re not much different than they are here.
Precious metals will always be of value, naturally, but in a total SHTF scenario, barter items, and especially foodstuffs would likely be of greater value.
As to our # 1 priority, that would be guns & ammo. That is the ONLY thing stopping the NWO at this point, as virtually all the other countries’ governments have disarmed their populations. Very sorry you were misled by that false flag, but our enemy’s motto is “War by Deception”, and that is the only reason they continue to survive. They are masters of deception, but then again they’ve had a few thousand years to hone their skill.
“… why not super tax the banks”
Surely you jest. The banks are owned by the Zionist scum that own the government of every country EXCEPT those WITHOUT an NWO owned central bank. That list is extremely short now, and soon to be even more so.
I don’t recall seeing you post here before, but then again I don’t always have time to see all the articles (more often than not). If that’s the case, then welcome to THE best truther site on the net (I could be slightly biased, however 😉 )
Hi and thanks for the reply. I have been reading posts on here for a while. Just thought I would put a comment in for a change. When I see what the banking cartels and governments are doing to peoples savings it just makes my blood boil. I invest in silver and I see the banks manipulate the price to whatever direction they want, I see my investment going down the toilet.