According to a recent GOBanking.com survey, the percentage of Americans with zero retirement savings fell dramatically in 2018 from one year ago—by more than 20%, to be precise.
Even better, the number of Americans with $300,000 or more in retirement savings increased by 2%, while the number of workers with $200,000 to $299,999 in a retirement account doubled year over year. Additionally, the number of folks with $100,000 to $199,999 saved grew by 5%.
There are many reasons behind this strong upward trajectory. The jobless rate has been lingering near historic lows for quite some time (in fact, employers have struggled to fill job openings due to a lack of qualified candidates), consumer spending has been humming along, and the U.S. stock market is in its tenth year of gains. Life is generally good.
Despite these gains, more than two-fifths of Americans are still facing retirement with less than $10,000 in savings – and 14% of that group have absolutely nothing saved at all. According to the Bureau of Labor Statistics, the average 65 year old spends about $46,000 per year, so the lack of substantial savings is quite alarming.
Out of the 1,000 surveyed who have no retirement savings, 40% said they don’t make enough money to put anything away. Another quarter of respondents said that they struggle to pay their bills, which prevents them from building their nest egg – this was the most commonly-cited reason by baby boomers with no retirement savings.
If you fall into one of these categories, saving enough to retire well might seem like an impossible task. But it’s never too late to start, even if you can only put away a few dollars at a time. And even if you already have a substantial amount saved up, you may be able to improve on your situation further by attending our free online retirement workshop and applying what you learn to your investment strategy.