6 On Your Side Answers: Most Americans aren’t saving enough for retirement

NEW MARKET (WATE) – If you have not started saving for your retirement, you aren’t alone. According to a survey released this week, most of us aren’t saving as much as we should.

Only about one out of five Americans, 18 percent, say they’re confident about having enough money to retire comfortably. That’s up from 13 percent just a year ago.

On the other end of the retirement scale, one out of four, or 24 percent, are not confident they have enough put away for their golden years.

Getting people to save for retirement hit its stride about 10 to 15 years ago, through workplace retirement plans, such as 401K programs.

Ninety percent of workers participating in a retirement plan report they have saved for retirement, according to a survey by the Employee Benefit Research Institute, a non-partisan organization.

Participation in a retirement plan matters because only 20 percent of those without a company plan, one in five,  put money away by themselves.

According to the survey, more than half of the workers, 53 percent, say day-to-day expenses and the high cost of living head the list of reasons why they can’t save for retirement.

Of those who have saved under workplace retirement plans, 38 percent report savings of less than $25,000.

Of those who have household incomes of less than $35,000 a year, 68 percent report they have savings of less than $1,000.

In simple terms, they can’t afford to put away money needed for retirement.

You can see Don Dare’s 6 On Your Side Answers every Tuesday and Thursday on 6 News at 4:00.

If you have a question you can send Don an email at ddare@wate.com or call his 6 On Your Side hotline at (865) 633-5974.

blog comments powered by Disqus