Only 10% of Americans Are Saving Enough to Retire
Nearly half of Americans are not saving for retirement, and those who are putting money aside are not saving enough, according to a recent study from Ramsey Solutions. In fact, only one in ten are saving 15% or more of their income.
The study, which surveyed more than 1,000 U.S. adults, also found that 7 in 10 consumers want to be saving more, but the cost of living is holding them back. Top obstacles to saving include credit card debt (31%), their primary mortgage (31%) and medical expenses (27%).
“Age, demographics and income level all play a factor in how much people can save and the obstacles standing in their way,” says financial expert Chris Hogan. “But if you’re going to reach retirement age with adequate savings, you have to make a plan to pay off these debts and reduce cost of living expenses so you can free up your income and start to save for your future.”
Other key findings include:
- Only 16% of GenXers are saving enough for retirement, and 20% have no retirement savings at all. 40% are saving between 1% and 9%, and half have saved $25,000 or more.
- Even though many Baby Boomers are reaching retirement age, 54% have less than $25,000 saved. Of that group, more than half have no retirement savings whatsoever.
- Women are having a harder time saving than men. They are twice as likely to have nothing saved, and while more than three-quarters of men are saving for retirement, only 60% of women are saving.
- Of those who are not saving, most say they are counting on Social Security, their personal savings and being able to continue to work to get them through their later years. 44% of non-savers say they are worried they will outlive their money, which is similar to savers (46%).