In case you missed it… LIMRA, a worldwide association of financial and insurance services companies, recently released a survey showing that 49% of Americans aren’t saving anything for retirement. Zip. Zero. Zilch. Nada. Nothing.
Not surprisingly, those in the youngest age group (18-34 years old) are doing the least, with 56% of respondents reporting that they’re not saving for retirement.
At the same time, the average respondent answered nearly half of the questions about IRAs incorrectly, betraying a lack of knowledge when it comes to the available tools for retirement investing. And when comparing IRA owners to non-owners, the former group only narrowly outscored the latter.
Interestingly, an earlier survey by the same group found that only about a third of Americans feel like they’re saving enough to support them throughout their retirement.
When combined with a strong movement away from defined benefit (i.e., pension) plans and ongoing concerns about Social Security, the above results suggest that we’re headed for a retirement crisis.
I’d be willing to bet that the typical FCN reader is well above average when it comes to things like saving for retirement, but I’d still like to hear from you. Are you saving for retirement? If so, how much (as a percentage of total income)? And in what type(s) of account(s)? Traditional or Roth IRA? 401(k)? 403(b)? Etc.
As for us, I’m maxing out my available employer-related accounts, stashing away a bit more from self-employment income, and my wife and I are also maxing out our IRAs (using the backdoor Roth approach). What about you?