Study: U.S. Workers Not Saving Enough for Retirement
By Brenner Spiller & Archer, LLP | June 10, 2016
American workers are not saving enough money in anticipation of retirement, according to a recent survey. That might not come as much of a surprise. However, it may be surprising to learn that it is not just recent college graduates and younger workers who are failing to save for retirement; many older workers fast approaching retirement age are also not doing enough when it comes to saving money, which can lead to serious debt problems and even bankruptcy.
The survey on retirement savings was conducted by GoBankingRates, a company that provides financial advice and personal finance news. The survey showed that 26 percent of US workers over the age of 55 have retirement savings of less than $50,000. Perhaps most alarmingly, approximately 30 percent of survey respondents over the age of 55 indicated that they do not have any money saved up for retirement.
Although Americans across all age groups are failing to save enough money for retirement, the truth is that older workers are at the greatest risk of finding themselves with serious debt problems after retiring. That’s because these individuals don’t have a lot of time to get caught up and prepare themselves for the years that follow retirement.
What Happens to Retirees Who Lack Savings?
When a person retires without enough money in their savings accounts, they often find themselves relying on Social Security in order to get by and cover their necessary expenses. The problem is that Social Security typically only replaces 40 percent of the average U.S. worker’s income before retirement. Meanwhile, economic experts estimate that the average American will require between 70 percent and 80 percent of their pre-retirement income after they retire and leave the workforce for good.
Even if you have saved money for retirement, you can always save more. As hard as it might be to stash away money for later when you have pressing financial obligations right now, it is imperative that you prepare for unanticipated expenses after retirement. For example, a serious medical issue during your later years could be devastating if you do not have sufficient retirement savings.
To learn more, check out The Motley Fool article, “Guess How Many Americans over 55 Don’t Have Any Retirement Savings.”
If you are dealing with debt issues and could use some assistance, whether it’s seeking out debt relief options or filing for Chapter 7 or Chapter 13 bankruptcy, you should talk to a knowledgeable bankruptcy and debt management attorney. The experienced bankruptcy lawyers at Brenner Spiller & Archer, LLP are prepared to help you. Contact us now to schedule a free consultation.