Isn’t this hard to believe? All too many people use the excuse they cannot afford to save. If they can’t afford to save, can they ever afford to retire? Maybe not.
Some people are so low income they actually cannot save. They are the great minority. The majority can’t afford to save because they spend too much on non-necessities.
Americans are falling behind on retirement savings, and the statistics are troubling.Those between the ages of 55 and 64 who have retirement savings only have a median of $120,000 socked away, Bankrate reports in a new survey, citing data from the Federal Reserve. That’s only 12 percent of the $1 million many experts recommend, and it’s worth noting that even that doesn’t stretch as far as it used to.
Those aged 65 to 74 aren’t doing much better: They have a median of $126,000 saved in retirement accounts. That “won’t last long in the absence of paychecks,” the survey notes.
Many experts recommend having at least seven times your annual salary saved by 55, which means American households earning $57,617, the median income in the U.S., should have at least $403,319 socked away by that age. By retirement at age 67, that number rises to 10 times your salary. That’s about $576,000 for anyone earning around the median U.S. income.