Over a third of Americans have no retirement savings: study
20 Aug 2014
A third of people (36 per cent) in the US had no retirement savings, reveals a new survey.
According to the study of those without retirement savings, 14 per cent were over 65; 26 per cent were between 50 and 64, 33 per cent were between 30 and 49; and 69 per cent were between 18 to 29.
The survey was conducted among 1,003 adults, was conducted for investments assistance site Bankrate.com.
USA Today quoted Bankrate.com chief financial analyst Greg McBride, CFA as saying, regardless of age there was no better time than the present to start saving for retirement.
He added, the key to a successful retirement was to save early and aggressively.
According to other recent research, many people were not saving nearly enough for their golden years.
About 36 per cent of workers had less than $1,000 in savings and investments that could be used for retirement, apart from their primary residence or defined benefits plans such as traditional pensions, while 60 per cent of workers had less than $25,000.
However, on the bright side, the most common decade for people to start saving was in their 20s, according to US News & World Report.
Twice as many 30 to 49 year olds said they started saving in their 20s rather than their 30s, while the 50 to 64 age group was ''only slightly more likely'' to have started saving in their 20s over their 30s, according to the report.
According to McBride, the burden for retirement savings was bigger for each younger generation. He added, pensions were less prevalent, medical care costs were higher and life spans were longer.
He added younger generations did not have the luxury of counting on a pension in many cases, and for those at the younger end of the age bracket, the future of social security was very uncertain.
The report added that people working full-time jobs were nearly twice as likely as part-time workers to have a retirement savings plan.
College graduates were more than twice as likely as those with just a high school diploma to start saving in their 20s.
Also, college graduates were more than twice as likely to say they were comfortable with their savings as compared with those not educated beyond high school.
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