Frightening Facts About Retirement Savings

If you’re concerned about having enough money for retirement, you should be. Although it’s recovering, the US economy is still a mess and world events could easily trigger another recession.

It’s tempting to bury your head in the sand and hope for the best. Don’t do it. Frightening facts about retirement savings should motivate you to accelerate your retirement plans.

Frightening facts about retirement savings

Here are just a few sobering facts that may cause you to reevaluate what you’re doing to plan for retirement.

  • A 65-year-old couple retiring in 2012 is estimated to need $240,000 to cover medical expenses throughout retirement.
  • Just 14% of American workers are very confident they will have enough money to live comfortably in retirement.
  • Only 16% of American workers are very confident that their investments will grow in value.
  • For a low earner retiring at 62 — Social Security replaces 40% of pre-retirement earnings. This is unlikely to provide for a comfortable retirement.
  • Nearly 75% of retirees have not saved enough and said they would save more if they could do it all over again.
  • More than one-third of all households end up with no employee-sponsored retirement plan at all during their entire work lives and others, who move in and out of coverage, end up with inadequate 401(k) balances.
  • 60% of workers report that their total household savings and investments, excluding the value of their home and any defined benefit pension, is less than $25,000.

There is no doubt the financial situation is serious. For many of us there’s simply little or no time left to plan and invest for our “golden years.” We have to make do with what we have. Frightening facts about retirement savings should be a wake up call for all of us to do what we can — now.

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