“Cost of living and day-to-day expenses” are these truly reasons not to save for retirement? Well, I guess if you ask Elizabeth Warren and company she would say people are struggling and cannot afford to save. Oh yes, there are some people like that. However, when you see how people spend their money either statistically or merely by observation, it’s pretty clear most people could save if they were so inclined.
For example, say you smoke and it costs you a mere $7.00 a day; give up smoking and you have about $210 a month to save. Do that for 30 years and you will have $174,806 at only a 5% return. Bump up the return to 8% and you have $323,052 😎
Tell me that the vast majority of Americans can’t find something that allows them to shift an average of $7.00 a day in unnecessary spending to saving. The trick of course, and you have heard this many times before, is to pay yourself first. Set your saving first, then set your standard of living with what’s left … even if it hurts for a while. This is made easier if you use a pre-tax vehicle like a 401k or IRA.
A third of people (36%) in the U.S. have nothing saved for retirement, a new survey shows.
In fact, 14% of people ages 65 and older have no retirement savings; 26% of those 50 to 64; 33%, 30 to 49; and 69%,18 to 29, according to the survey of 1,003 adults, conducted for Bankrate.com, a personal finance website…
… Other recent research confirms that many people aren’t saving enough for their golden years. About 36% of workers have less than $1,000 in savings and investments that could be used for retirement, not counting their primary residence or defined benefits plans such as traditional pensions, and 60% of workers have less than $25,000, according to a survey of 1,000 workers from the non-profit Employee Benefit Research Institute and Greenwald & Associates.
Many people realize that they are not on track in saving for retirement, and the two most important reasons they give are cost of living and day-to-day expenses, says Jack VanDerhei, the institute’s research director…