Americans Are Not Financially Prepared for Retirement
A quarter of U.S. adults have no retirement savings at all
Retirement may be on its way to becoming a luxury of the past.
A recent report from the U.S. Federal Reserve revealed that many adults across the United States are not financially prepared for retirement, Forbes reported. According to the data, nearly a quarter of American adults have no retirement savings or pension.
From dashed dreams of home ownership to more debt and less wealth than previous generations, millennials have long faced a bleak financial future. However, the retirement crisis isn’t just limited to younger generations. While those closer to retirement did report higher levels of preparedness, 13 percent of individuals over 60 reported zero retirement savings, and that number rose to 17 percent among those in the 45-59 age bracket.
Naturally, the stats were still worse for younger Americans. Among young adults between 18 and 29, nearly half have no retirement savings, along with a quarter of those between 30 and 44.
The data didn’t reveal anything struggling Americans didn’t already know, with many adults across all age brackets reporting a self-assessed lack of preparedness for life after work. Less than half of individuals over 60 reported feeling their savings were on track, and younger adults had even less confidence in their retirement plan. Only 42 percent of adults between 45 and 59 reported feeling prepared, while just 35 percent of those aged 30 to 44 said the same.
Many experts advise young adults to start saving for retirement early, suggesting individuals automate their savings using options like an employer-sponsored 401(k) plan. According to the report, however, six in 10 non-retirees who hold retirement savings accounts reported having little or no comfort managing their investments, and most answered fewer than three out of five financial literacy questions correctly.
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