Individuals and Industries Need to Work to Increase Retirement Savings

Earlier this year, Yahoo! Money looked at the results of the Retirement in America report from PwC and found that people in the U.S.seriously lack retirement savings. Twenty-five percent of Americans do not have any retirement savings and those that do are not saving enough. Younger people were the least likely to save for retirement, since 42% of 18-to-29-year-olds do not have any savings. Still, the 13% of people over 60 who do not have retirement savings is a cause of concern for financial experts.

An expert told Yahoo! Money that people who are saving some money for retirement might have enough to give them about $1000 per month once they stop working. This estimate was based on the findings that “…the median retirement account balance for 55-to-64-year-olds is $120,000. When divided over 15 years, that would generate a modest distribution of less than $1,000 per month…”

If you are fortunate enough to have steady income and can save for retirement, this is something you need to start doing right away (if you are not doing so already). Do not wait until after you take a vacation or make some large purchase. Start to build your retirement fund now. 

Those who work and conduct financial research know that the industry has room for improvement as well. Workers would benefit if there were ways to apply technology to their financial goals. You get reminders about everything else, why not get notifications and reminders about saving for retirement? There also needs to more ways for people who work for small businesses to save for their golden years. Employees of large companies have plans that their employers set up. An expert quoted on the article thinks that small businesses should pool resources so their employees can have the same kinds of benefits.

Whether your employer offers a comprehensive retirement plan or not, there is nothing stopping you from getting the information you need. Get in touch with a Fee-Only financial planner who can offer personal guidance about saving for retirement.

©Bring Clarity to Your Finances™. Individuals and Industries Need to Work to Increase Retirement Savings is a post from Bring Clarity to Your Finances™

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Claire Emory, MBA, CFA, CFP®

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