Failure to Plan for Retirement is a SERIOUS Problem
With the possibilities of too much debt, little savings, or stalled wages, Americans fall victim to retirement crises every day. The following statistics are scary but need to be highlight to accept the reality.
1. One in three Americans has nothing saved for retirement
More than half of Americans have less than $10,000 saved for retirement. The National Institute on Retirement Security estimates the nation’s retirement savings gap is between $6.8 and $14 trillion.
2. Women are 27% more likely to have no retirement savings
Women must save 18% while men need to save 10% to reach the same financial level in retirement.
The gap between men’s and women’s retirement savings equates to as much as 27%. Nearly two-thirds of women have nothing saved or less than $10,000 in retirement savings, compared to 52% of men. It’s harder for women to save in general, as they make $0.79 for every dollar men make in full-time positions.
3. 76% of baby boomers aren’t confident they’ve saved enough for retirement
According to a survey by the Insured Retirement Institute, a large majority of baby boomers doubt their financial future. Of those lacking confidence, 68% wish they’d saved more and 67% wish they would’ve started saving earlier. More than half of Baby Boomers said they need Social Security to make it through retirement.
4. The number of seniors declaring bankruptcy has grown to 7%
In 1991, only 2.1% of those filing for bankruptcy were 65 or older. This number climbed to 7% by 2007, a scary number considering the limited options seniors have to make money. The Employee Benefit Research Institute notes “without a job or income stream to convince lenders otherwise, you may have a hard time opening credit cards, securing transportation, or renting a home as a senior.”
5. By 2033, Social Security will need to be cut by 23%
Social Security is the most commonly cited source of income for retirees.
Nobody knows what Social Security will look like in a few decades. Without reform, benefits will need to be cut by 23% in aggregate in 2033, according to the Social Security Administration. In other words, after the depletion of reserves, tax income will only be able to pay 77% of scheduled benefits in 2033. This is scary, considering Social Security keeps nearly 27 million Americans above the poverty threshold, as estimated by the Economic Policy Institute.