Saving enough for retirement is a concern for most, but what’s more concerning may be how many aren’t saving for retirement.
A survey by Country Financial finds that one in four Americans admits they are not saving at all for retirement, or they are unsure.
Also, 38% of those 40 and older who say they regret decisions they’ve made with their retirement savings; namely, not starting to save early enough (47%).
Perhaps this is why Americans are not confident that a secure retirement is a viable option as 46% say it’s not possible for a typical middle-income family to save for a secure retirement. This is two points higher than this time last year and the most to say this since March 2011.
“It’s a real wake-up call to see that so many Americans are not putting money toward their nest egg and are, in turn, generally concerned about retirement prospects,” says Troy Frerichs, director of wealth management at Country Financial.
Despite having more time to prep for their golden years, those in their 20s and 30s are pessimistic about their retirement prospects.
- Thirty-two percent of those ages 18 to 29 are not saving for retirement or are not sure, more than any other age groups.
- More adults ages 30 to 39 say it’s not possible for a typical middle-income family to save for a secure retirement than any other age group (47%).
- Of the 44% of 18- to 29-year-olds who participate in a 401(k) plan, 39% say they do not know where their contributions are invested.
Americans may be wary of their retirement prospects not only because many are not saving, but of those who are, they aren’t taking the proper steps to set themselves up for success in their golden years.
- Fifty-five percent say they are not or do not know if they participate in a 401(k).
- Twenty-nine percent say a 401(k) is the primary way they are saving; however, most lack a diversified retirement portfolio as just 17% say they are using at least two different savings vehicles.
- Of the 45% who do have a 401k, 30% don’t know where their contributions are invested.
The silver lining here, though, is that 43% say they check the health of their retirement savings every few months.
“It’s great that Americans are consistently checking the health of their retirement savings, but you have to do more than just look,” Frerichs says. “Knowing where your money is going and how to diversify your savings so you are set up well for your golden years is crucial.”
Related articles: