Are You Saving Enough to Retire?
A recent survey from TIAA-CREF found that, while 37% of American plan to retire before age 65, 44% of them are saving less than 10% of their incomes. This includes employer contributions.
TIAA-CREF – which provides retirement services – said that few Americans have what the firm calls “lifetime income solutions” capable of providing them with adequate income in retirement.
A shocking 21% of respondents told the firm that they’re not saving anything for retirement. Around half of the survey respondents plan to use withdrawals from their retirement savings as a source of monthly income.
TIAA-CREF said that people should save at least 10% to 15% of their incomes annually to be assured of a comfortable retirement. (Given all the career interruptions people are experiencing in recent decades, those figures may be low.)
While it’s clear from these figures that Americans aren’t saving enough, what’s less clear is why that is. Many retirement specialists say that people are just unaware of how much they need to save. But another reason is that too many Americans are living paycheck-to-paycheck, and simply don’t feel they have anything left over to save.
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