Roughly 42% of Americans have fewer than $10,000 saved for when they retire. That’s according to a study by GoBankingRates released recently. From 2016 to 2017, the percentage of Americans with $0 saved increased. Thankfully, so far this year, it dropped significantly. The percentage of adults with nothing saved has gone down. However, the percentage of those with $300,000 or more in a retirement fund has increased.
The top reason that most people cited for not saving, was because they simply didn't earn enough to save. The next reason given was that they were already struggling to pay bills, according to GoBankingRates. The personal finance site interviewed more than 1,000 adults online in February.
For those with little or no savings, a significant lack of proper investment income and planning and the fact they’re expected to live longer lives has made the concept of retiring practically impossible.
Millennials are most likely to have fewer than $10,000 saved, but older Americans are also becoming steadily more negative about their future economic prospects. This is according to another study by United Income, a start-up that is applying big-data analysis to financial planning.
Reference: CNBC (March 6, 2018) “42% of Americans are at risk of retiring broke”