A Federal Reserve study found that 44% of Americans either couldn’t cover a $400 financial emergency or, to do so, would need to borrow or sell something. Among households headed by someone age 55 and older, 29% have neither retirement account savings nor a defined benefit pension plan, according to a 2015 Government Accountability Office study.
But perhaps the most revealing indicator is this: 50% of Americans are at risk of failing to maintain their standard of living once they retire, according to Boston College’s Center for Retirement Research. This assumes that, once retired, Americans will generate income by taking out reverse mortgages and purchasing income annuities—something few do. In other words, the portion of the population at risk of a belt-tightening retirement is likely much higher than 50%.
Source: The Other Half – HumbleDollar