Nearly 1 in 3 adults have no retirement savings
A federal survey also found that only 18 percent of Americans close to retirement age plan to retire on a set date and not work again.
This post comes from Krystal Steinmetz at partner site Money Talks News.
Many Americans are not prepared for retirement. While that may be no surprise to you, this might: One in 5 people who are nearing retirement age have no money saved.
Thirty-one percent of non-retired respondents reported having no retirement savings or pension, including 19 percent of those ages 55 to 64. Additionally, almost half of adults were not actively thinking about financial planning for retirement, with 24 percent saying they had given only a little thought to financial planning for their retirement and another 25 percent saying they had done no planning at all.
So why do so many Americans lack a retirement savings account? The survey found that many young people haven't started saving for retirement yet. But it goes beyond that, the report said.
Part of the story also seems to be one of financial fragility for some households, who lack retirement savings and also have little financial cushion at all. Over half (54 percent) of those with incomes under $25,000 reported having no retirement savings or pension, compared with 10 percent of those earning $100,000 or more. Of those who reported that they had no retirement savings or pension, 67 percent also reported that they did not regularly set aside part of their income in some type of savings account, compared to 47 percent of the overall population.
The report also includes these retirement statistics:
- Of those Americans close to retirement age (55 to 64), just 18 percent said they planned to work full time until a set retirement date, then not work again. About a quarter said they would work as long as possible. Another 18 percent said they anticipated retiring, then taking on a part-time job. And 9 percent said they'd retire and then work for themselves.
- About two-fifths of Americans ages 45 and older who had not yet retired said the Great Recession pushed back their planned retirement date.
- Nearly 3 in 4 retired people included Social Security benefits as one source of retirement funds. Another 44 percent cited defined benefit pension payments as retirement income. And 32 percent said they use savings outside a retirement account.
The Fed surveyed more than 4,000 working and retirement-age Americans.
Are you surprised that 31 percent of Americans have saved zilch for retirement?
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I think this situation calls for confiscation of money from those who worked hard and saved for retirement and given to the incompetent, stupid and lazy who didn't. That's how america works now, isn't it?
Just a couple of weeks ago MSN ran an article stating that elder people were holding on to more money than ever. You should have read the comments on that article by younger people calling the older people hoarders
More typical MSN junk news
If people don't save for their retirement, they will be a burden on their families and society. For the most part, and there are exceptions, you can always save something, always. You might have to give up the iPhone and the cable tv, maybe take a sack lunch to work, maybe find a part time job for a while, maybe the less expensive internet connection, there are always savings. Most important, pay yourself first! If the money is taken from you check before you see it, it's harder to spend.
Why do I feel like I'm whistling into the wind.....
IT's worse than that. I'm semi retired by choice not necessity. I had a CPA Practice and did taxes and accounting. I saw many people with no savings, some regarded their 401K, or 403B as savings and had no other savings. Usually people don't ask for advice in advance, they tell you what they did or got a 1099 and show you that. I've seen some very wealthy people with big pension accounts a big house mortgaged to the hilt and no other savings or investments.
It all comes down to education and many people have no idea what to do and live beyond their means.
The typical working-age household saw an income decline of $2,700 from 2007 to 2009. Furthermore, given the great recession came on the heels of one of the worst business cycles (2000-07) on record in terms of job creation, the typical working-age household brought in roughly $5,000 less in 2009 than it did in the year 2000.
Job loss in the Great Recession was by far the most severe of any recession since WWII. In the two years from December 2007 to December 2009, the labor market shed 6.1% of all payroll employment. By comparison, in the deep recession that began in 1981, job loss, at 3.1%, was about half as severe.
While the peak unemployment rate was slightly higher in the 1981 recession than in the Great Recession, the increase in unemployment associated with the Great Recession was the largest increase in any recession in 70 years.
WIC --pays for food of new born babies
Food stamps -pays for food of poor folks
Medicaid- pays for medical of poor folks
Medicare-pays for medical of old folks
Affordable Care Act- I guess pays for medical care for some of folks that are not poor or old
Disability --provides income for folks that can't work because of an illness or other medical issues
Public schools-- pay for education breakfast and lunch
SNAP- Additional nutritional programs not quite sure what you need to qualify
HUD- Helps defray the cost of housing for poor and middle income
Social Security- Income paid to old folks for being old
DOE -has energy assistance programs
Department of Agriculture- Besides food stamps- also pays assistance to farmers
States also have additional aid programs to poor, middle class and businesses
Student aid--Helps pay for schooling
Subsidies are given to business that have trouble surviving on their own.
The list goes on and on.
With all of the above being paid for by taxes and borrowing from future generations, it leaves less money for working people to save. With all of the above programs is there an incentive to save or earn money? If you put food out everyday for stray cats, the cats will continue to show up at your house. What happens if the generous care-giver moves or dies? What happens to the stray cats? Is the caregiver being good to the cats or cruel? Does the care-giver have good intentions?
The spirit of Eeyore is abroad in the land, but of course that's just why the so-called "journalist" wrote this piece. There's really nothing new here, the same was true 30 years ago. Young people don't think about retirement, middle-aged people are busy trying to make ends meet and put the kids through college. It's mostly only people over 45 who start to think a lot about retirement. I'm surprised that 82% of them do (the opposite of the 18% they make a big deal of, but then it doesn't "sell papers" to say that, does it?)
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