The Employee Benefit Research Institute recently released its 2012 Retirement Confidence Survey (pdf download). It’s not a pretty picture.
The survey covers a lot of retirement issues, including confidence you’ll have enough to retire (most aren’t so confident), what age you think you’ll retire (in 1991 11% said 65; in 2012 it jumped to 37%), to why people retired when they did (more than half were forced to retire for various reasons). What interested me the most, however, was the rate at which people are currently saving for retirement. Actually, it saddened me more than anything else.
Here are the stats:
- Only 66% of workers report saving for retirement (down from 75% in 2009));
- Even among retirees, only 68% have ever saved for retirement;
- The percentage of workers who are currently saving for retirement is just 58% (down from 65% in 2009));
- Sixty percent of workers have saved less than $25,000
- Thirty percent of works have less than $1,000 saved
It’s the total savings that concerns me the most. Here is a chart from the report showing the amounts saved by year:
If you’re reading this and either aren’t saving for retirement or saving enough, here are some quick tips–
- If you have a job with a 401(k), start saving today. Even just $25 a month is a step in the right direction, and you’ll miss the money a lot less than you think (remember, it’s before tax savings so your take home pay won’t go down as much as you think).
- If you don’t have a 401(k) option, start an IRA. You can open an IRA at Betterment for free, get a $25 bonus, and save as little as $25 a month. And it’s easy to set your investing options and let Betterment do the rest.
- If you think you can’t possible save anything, check out my 99 Painless Ways to Save Money. It’s a eBook you get for free when you sign up to my newsletter (which is also free). You can probably save more than you think!
Published or updated May 4, 2012.