More than a third of American adults have no retirement savings, including 14%
of those 65 or older, according to a new study released yesterday.
The low savings rate for people at or approaching retirement age is alarming said
Greg McBride, chief financial analyst for Barnkrate.com, which conducted the
survey.
About a quarter - 26%- of those age 50 to 64 haven't started saving for retirement,
the survey said the figure was 33% of people who are 30 to 49 years old.
They still have time to start but they still have to save so much as a percentage of
their income to make up for the years they weren't saving that it puts them in a tough
spot. Overall, 36% of those 18 years or older have not started saving for retirement.
Surveys show that younger people are starting to save earlier than in past generations.
Twice as many adults who are 30 to 49 years old started saving when they were in
their 20s instead of waiting until their 20s. Those 65 or older were just as likely to
have waited until they were in their 40s to start saving as to have started in their 20s.
Greater awareness of the financial problems of social security is a main reason.
Automatic enrollment in 401(k) plans also have helped people to start saving earlier.
Still 69% of those 18 to 29 years old have not retirement savings. Adults who haven't
begun saving should start now, even if it involves putting away just a small amount
of money each week.
Sheila McKinney
