A significant percentage of American workers — 28 percent — say they have virtually no money in savings and investments, according to a new report.
These workers have less than $1,000 in savings that could be applied toward their retirement years, according to a new Employee Benefit Research Institute (EBRI) and Greenwald and Associates survey.
Among all surveyed workers, 57 percent report that the total value of their household�s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000. This includes the 28 percent who say they have less than $1,000 in savings.
Here’s the Breakdown:
Approximately 1 in 10 each report totals of $25,000�$49,999 (9 percent); $50,000�$99,999 (10 percent); $100,000�$249,999 (10 percent), and $250,000 or more (14 percent, up from 11 percent in 2014)
Not surprisingly, total savings and investments increase sharply with household income, education, and health status.
Can They Save More? Yes.
Many workers concede that they can save more than they are currently saving. Seven in 10 (69 percent, up from 62 percent in 2011) say it is possible for them to save $25 a week more than they are currently saving. This includes 55 percent of workers who have not saved any money for retirement. What would they have to give up to save this money for retirement?
Almost half (46 percent) report they would give up eating out or take-out food.Others would give up:
- Soft drinks or snacks from vending machines (13 percent).
- Movies, videos, DVDs or streaming (12 percent).
- Coffee from specialty shops (11 percent).
- Lottery tickets (8 percent).
However, one-quarter (24 percent) state they would not need to give up anything to save the extra $25 a week. Fortunately, for those who are retired and struggling with their finances, there are resources they can turn to. If this is something you are interested in or concerned about then maybe you could take a look at these 5 killer tips for increasing your wealth in your 50s.
Americans are living longer after they stop working, so their savings have to last longer. A man reaching age 65 in 1970 could expect to live an additional 13 years, but by 2011 that figure jumped to 18 years. A woman’s life expectancy at age 65 increased from 17 years in 1970 to 20 years in 2011 (the most recent year for which such data is available from the Centers for Disease Control).
Not surprisingly, a growing number of Americans are worried about running out of savings in retirement. Almost two-thirds of workers (64 percent) say they feel they are behind schedule when it comes to planning and saving for retirement, according to the EBRI Retirement Confidence Survey report.