While respondents in Northwestern Mutual’s 2019 survey reported better money management skills than those surveyed 10 years ago, the outlook for many of their futures remains grim. The survey found: 22% of Americans have less than $5,000 saved for retirement. 15% have no retirement savings at all. 56% don’t know how much money they need to retire comfortably. 41% are taking no steps to prevent themselves from running out of retirement savings, though many see this as a possibility.
The percentage of Americans with less than $5,000 in retirement savings actually decreased compared to last year, but 22% is still an alarming number of people without adequate savings.
The study focused on baby boomers and Generation X – the two generations next in line for retirement – and the results showed both groups have work to do. Of the 10,000 baby boomers turning 65 every day, 17% have less than $5,000 in retirement savings, and 20% have less than $5,000 in personal savings outside of a retirement account.
Source: Retirement, social security: Baby boomers, Generation X to go broke