America’s Savings Crisis Continues
The unemployment rate may be way down since the depths of the recession — with many more people earning a wage than was the case 7 years ago — but most Americans still aren’t saving for retirement.
According to a new report from Bankrate, just 19% of working Americans are saving more for retirement now than they were one year ago. Fourteen percent are saving less and 55% are saving about the same amount.
Worse yet, a full 10% of workers have contributed exactly nothing to their retirement accounts. Not this year, or last.
Bankrate did point out that things have improved somewhat in recent years: while 14% are currently saving less for retirement (which isn’t good), a disturbing 29% of Americans were saving less in 2011.
As Greg McBride, CFA, Bankrate.com chief financial analyst, points out, “With millions of Americans behind in their retirement savings, it is important not only to save, but to save more each year,” said Greg McBride, CFA, Bankrate.com chief financial analyst.
“Even for those saving the maximum, 401k contribution limits increased for 2015, affording the opportunity to put more away for retirement,” he said, in a statement.
Experts point out that, without that steady increase in savings, it is near impossible to accumulate enough money to retire in comfort.
Sadly, millions of Americans will discover this only when it’s too late.
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