You may dream about kicking back and relaxing during your golden years, but if your retirement savings account looks like those of 26 percent of American workers – with less than $1,000 in it – then there’s a good chance your dream will instead become a tough reality.
The Employee Benefit Research Institute just released its 26th annual Retirement Confidence Survey. It revealed that although a growing number of American workers report being confident about their ability to afford a comfortable retirement, only a minority seem to be taking the steps necessary to prepare and build a retirement nest egg.
Retirement experts recommend saving about 10 percent — more if possible — of your income each year for retirement. But while 63 percent of workers surveyed by the EBRI said that they (or their spouse) are currently saving for their golden years – an increase from 61 percent in 2015 – 26 percent of workers report having less than $1,000 total in savings and investments, and 16 percent said they have between $1,000 and $9,999 saved.
Retiree confidence about having a financially secure retirement grew in 2014 and 2015, after a slump during the Great Recession, the EBRI survey showed. Thirty-nine percent of workers in 2016 reported being “very confident” about having enough money to live comfortably during in retirement, which is a slight increase from 37 percent in 2015 and a big jump from 28 percent in 2014.
Not sure if you’re in good shape for retirement? Check out “Are You Saving Enough to Retire?”
If your savings aren’t where they should be, check out our tips on how to catch up in “Behind on Retirement Savings? Here Is What to Do.”
MTN has lots of helpful retirement planning tips. Try “How to Get a Grip on Your Retirement Savings and Security” or “6 Ways to Ensure You’ll Have Enough Money in Retirement.”
Are you confident you’ll be able to retire comfortably when the time comes? How much money have you socked away for your golden years? Share your comments below or on our Facebook page.