You have probably seen several news reports quoting statistics from the 2010 Retirement Confidence Survey by the Employee Benefit Research Institute. Some of the more interesting figures from the survey are that 43% of Americans have less than $10,000 in retirement savings and 27% say they have less than $1000 in savings. Also only 16% have confidence in their ability to save enough for retirement.
These statistics may not be as bad as they seem. The statistics do not include the value of primary homes or defined-benefit pension plans. Also, you need to consider that some of the survey respondents are still in their 20’s and haven’t had much time to accumulate much in savings.
Even taking these factors into account though it is clear that most Americans need to be doing more in preparation for retirement. They survey showed that many people are unaware of how much they need to save for retirement or how to calculate how much they need to save for retirement. I think it is also clear that without the safety net of Social Security there will be millions of Americans that are never able to retire.
Comments
5 responses to “Most Americans Unprepared for Retirement”
[…] Most Americans Unprepared for Retirement (myretirementblog.com) […]
[…] Most Americans Unprepared for Retirement (myretirementblog.com) […]
Understanding how to choose a safe retirement strategy is important, because the newspapers are full of stories about social security funds running out in the near future. This means that retirment plans for business owners and individuals both will end up being the main source of retirement income for many. There are some tips and hints that can help with informed retirement strategy decisions. The first tips is that retirement funds should never be placed at high risk, because this can end up causing a loss of all investment capital, and no savings to live on during retirement. Slow steady gains are much better than volatile up and down swings when it comes to market and portfolio performance. It is better to stay even than go backwards, so choose stable investment choices which may offer small gains but do not fluctuate excessively.
Knowing how to choose a safe retirement strategy means being realistic about future needs, because these needs must be calculated to ensure enough capital is put aside for retirement. Social Security was never intended to cover complete retirement costs, and having other investments available for retirement is critical. The number one piece of advice is capital preservation. Always protect the investment capital where retirement investments are concerned, because this is money set aside for future expenses. No matter how great a deal is or an investment seems, never place retirement capital at risk. Be wary of any investments which seem too good to be true, or hat offer higher than usual returns. Far too often individuals lose their entire retirement savings because of a deal which seemed amazing but was actually a scam.
Thanks
Apex Investment Corporation
Interesting to see an investing company be the commentator on the article….
[…] enough money for retirement you have plenty of company. I wrote a little while back noting that most Americans are unprepared for retirement. Many people don’t get serious about starting their retirement savings until their in their […]