Many Americans Not Saving For Retirement

by Justin Weinger on April 16, 2007

According to an article published on CNN.com nearly half of us working stiffs have saved less than $25,000 for retirement – with nearly 1/3rd of the work force having absolutely nothing stashed away.

I know I’m a little late to the game on this article, but I think it’s worth reiterating how scary these numbers actually are, not to mention the fact that this is just another item that shows why learning basic personal finance is something that needs to be stressed in schools.

In looking at these numbers, the thing that concerns me the most is the fact it appears that many of today’s workforce seems to be relying on the fact that social security will be around to either bail them out or provide a nice stipend to make up for having skimped on their other retirement accounts.

With social security being in such bad shape, it seems we should be taking the opposite tact – putting more money towards our retirement accounts to make up for the fact that social security as we know it might not be around when it comes time for our retirement.

Unfortunately, with so many workers lagging in their retirement savings, they’re absolutely killing the one thing vital to allowing their accounts to grow – time.  Most of us have seen how important time is to growing a nest egg and how starting even just a couple of years later than you should may ultimately end up costing you hundreds of thousands of dollars.

So on that note, if you’re not saving for retirement, start right now.  If you’re not saving enough, figure out ways to increase your contributions.  If you’re on track for a comfortable retirement, reach out to others who might not be as financially savvy and help them start putting money away so that they can spend their golden years enjoying the fruits of their labor as opposed to continuing to labor to make ends meet.

Share

{ 2 comments }

Rhea April 17, 2007 at 10:51 am

We’ll have to be ingenious to solve this problem. I propose that we all learn to share. I know it’s a stretch, but not everyone needs to own his or her own car, washing machine, house, appliances, etc.

Baby Boomer 1961 October 23, 2007 at 1:04 pm

Many will blithly go into retirement expecting the government to help. It may not be there tho with the comming baby boomer surge into retirement the whole scheme could collapse.

{ 1 trackback }

Previous post:

Next post: