Bankrate: 26% of Older Americans Lack Retirement Savings

Twenty-six percent of 50 to 64-year-olds have not saved any money for retirement, according to a new Bankrate.com report. And the same applies to 14% of people 65 and older.

“The key to a successful retirement is to save early and aggressively, but even those on the cusp of their golden years should have some money allocated toward equities as opposed to all cash and bonds,” says Bankrate.com chief financial analyst Greg McBride, CFA, in a statement.

Overall, Americans’ feelings of financial security were unchanged from one month ago, indicating a slight improvement in their financial security compared to one year ago. Bankrate.com’s August Financial Security Index registered at 100.1. Any number above 100 illustrates improved financial security compared to one year ago, while any number below 100 reflects deteriorating financial security.

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For those older Americans who are saving, 50-to 64-year-olds were only slightly more likely to have started saving in their 20s than their 30s, and Americans 65 and older were almost evenly split between starting in their 20s, 30s and 40s.

The survey, conducted by Princeton Survey Research Associates International (PSRAI), polled 1,003 adults living in the United States between Aug. 7 and Aug. 10.

Read the full report here

Written by Cassandra Dowell

 

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  • This kind of information is very misleading. It really tells us nothing about how prepared the interviewees are for retirement.

    I know several seniors who have done very little to plan for retirement yet they are better prepared for retirement than most people I know. One such case is an individual who was on the original janitorial crew at eBay. He has millions in shares which eBay paid to him rather than cash in his early days at eBay.

    Another is near 60 but his entire work life has been working for first responders at three different municipal governments. He worked for each until he qualified for retirement. His retirement pay from all three will exceed his current pay by about 25%.

    Another had his twenty years as a Marine recruiter and has been with a couple of nonprofits since then with nice defined benefit plans. Again his total retirement pay including Social Security will be greater than his pay in any single year as an employee. He has a beautiful fully paid for home just east of Dallas, and frequently travels worldwide with his wife who is a contract corporate event planner for next to nothing.

    If you ask any of these people if they have saved for retirement all three will say: “On my salary?” Yet it is also true that many will have little more than meager savings, perhaps reverse mortgage proceeds, and Social Security in retirement. So what percentage is like my anecdotes? Who knows.

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