A recent survey by LIMRA, which is an association related to the financial services industry, found that 49% of American’s are saving nothing for retirement. The percent is even higher for 18-34 year olds, of which 56% save nothing. This includes either an IRA or a retirement plan at their place of employment.
Because we get too worried about these numbers, we need to keep a few things in mind:
- We don’t know who was surveyed. They could have interviewed a bunch of people that are unemployed which would skew the numbers. (Note, I’m not saying this was done, I’m just pointing out a possibility.)
- Times are tough. Many people may have cut back on their savings just to afford daily life.
- The 18-34 group percentage is misleading. Many 18-22 year olds are in college, meaning they aren’t going to be saving for retirement. Add to that those that jump right to grad school or travel for a few years after graduating and we’re looking at 26-27 when most will start saving. Personally, I didn’t start until I was 25.
But with all of that said, there are many people who do not save for retirement and even more that save too little. In fact, almost every year a new survey comes out and the numbers are usually close to what they were before.
I would like to hear from or interview someone who is currently saving nothing for retirement to understand their reasons why. If you are covered at work with a 401(k) plan, it only takes a few minutes on your lunch break to call email human resources for the paperwork to start contributing. The benefits department will take care of the rest.
I save as much as I can for retirement. I’d like to save more. I can’t imagine not saving and trying to get by in my last years of life with nothing. It’s not how I want to live.
Readers, are you currently saving for retirement? If not why not?