Majority of Americans Approaching Retirement Don’t Have a 3-Month Emergency Fund
According to the 2019 Financial Literacy Survey from Equifax, nearly half of American adults say they do not have enough money in savings to cover three months of living expenses, a standard amount for emergency funding.
What’s most alarming is the lack of savings among adults approaching retirement. Six out of ten respondents age 45 to 59 do not have a sufficient emergency fund. This figure has increased 35% since 2018.
The minimum age for collecting Social Security is 62 years old, but the average age of retirement is just shy of 60 (59.88 years old). That average age of retirement may increase with time. Currently, 31% of parents plan to retire later to help cover their children’s college expenses.
More than half (56%) of participants in the Equifax study said they do not have any money left at the end of the month, and 35% say they are not saving for retirement. That’s up from 29% last year.
Surprisingly, younger adults are more budget-savvy than older generations. A recent report showed 74% of adults 23-38 years old follow a budget for monthly spending and retirement, compared to 67% of those over 39.
Of great concern was the fact that the average Baby Boomer only has 30% of his or her retirement fund saved.
This entry was posted in Credit Card News and tagged Equifax , financial literacy , emergency fund , retirement savings , retirement , Equifax study , savings for retirement , emergency savings , retirement age , retirement fund , funding retirement , financial literacy study , emergency funding
The information contained within this article was accurate as of April 30, 2019. For up-to-date
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