According to the Center for American Progress, when reviewing the data on how American workers are saving for retirement, two facts become abundantly clear:

• Millions of Americans are in danger of not having enough money to maintain their standard of living in retirement.
• The problem is getting worse over time.

The consequences of these growing savings shortfalls could be severe for both American families and the national economy, as a large share of households may be forced to significantly reduce consumption in retirement and will have to rely heavily on their families, charities, and the government for help to make ends meet. Rather than staying in control of their economic lives, millions of Americans may be forced to muddle through their final years partially dependent on others for financial support and to accept a standard of living significantly below that which they had envisioned.

A large percentage of Americans aren’t saving nothing for retirement

According to a recently released household survey conducted by the Board of Governors of the Federal Reserve System, as of 2013, approximately 31 percent of Americans reported having zero retirement savings and lacking a defined-benefit, or DB, pension. This finding is in keeping with the results of other comprehensive Federal Reserve surveys and means that nearly one-third of people in the United States currently have no money put away in any type of retirement account to supplement their Social Security benefits. Among respondents ages 55 to 64—those nearest to retirement who already should have built up significant savings—the share who reported having no savings or pension was still 19 percent, or approximately one out of every five near-retirement households.

Low-income and part-time workers are at particular risk, because in many cases, they don’t have access to a retirement plan through their employer, says David Stone, CEO of Aria Retirement Solutions in San Francisco. “Many Americans have moved out of the traditional corporate employment world and work for small businesses,” Stone says. “They may juggle more than one job, and it can be quite a struggle to make ends meet, let alone set aside money every month to put into a retirement plan. Also, many younger Americans are working in more entrepreneurial positions, with reduced or no benefits.”

Solution: Save, regardless of how low your income is. Even if you just put $5 away per month, something is better than nothing. Never stop contributing to your retirement plan, because if better times come, you can always contribute more. My budget planner, “Storehouse Ready: Preparing for Life’s Events” will help you build your emergency fund, order at – Starting Emergency Fund page. 

If you would like to supplement your current retirement income, complete the contact form: