The medium savings in IRA accounts today is $2000 according to the Bureau of Labor Statistics.
American's in the lower income brackets overwhelmingly look to Social Security for just about 100% of their retirement incomes. I won't go into a lengthy discussion here about the health of Social Security, but suffice it to say people should be very concerned with its ability to keep up with real inflation measurements that would include energy and food, unlike the government's measurements which understate inflation, and suppress Social Security cost of living adjustments.
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C'mon Grouch we worry about this stuff when it reaches a crisis. Hey...maybe at that point banks will bail people out and then it will have come full circle. :)ReplyDelete
Why didn't I think of that? I could use a free bailout from my bank.ReplyDelete
Don't worry biz, there will be plenty of hand outs provided by people who were responsible enough to save... That is how everything works now :(ReplyDelete
What cynical answers by Suba and DIY Investor. Alas, I certainly understand where they are coming from.... It's just sad.ReplyDelete
P.S. Where did you get the statistic that 1/3 have no retirement savings?
Roshawn, that stat comes for a Fact Sheet published in 2009 by the Social Security Administration.ReplyDelete
I function on the assumption that my generation will not have SS. So, we need to save enough. Are we saving enough? No. Every year I tell myself I will start saving more and every year I tell myself that there is always next year. Sad but true.ReplyDelete
SS will be there for the younger generations.
All who have reached the minimum retirement age of 95 and can claim less than $100,000,000,000 in New Dollars annual income, are qualified.
I believe what you are saying, but yet it is so hard to believe that people would still not save for retirement, especially since so few companies offer pensions anymore.ReplyDelete
We will only be counting on ourselves for retirement. I am just incredulous that people would be so irresponsible. (But I guess not entirely surprised now that I think about it.)
SS is paying out more now than it takes in. How long can that last? We know there must be cuts comming. Do you have a company pension? How safe is that.ReplyDelete
That means a person must invest in their own 401K and IRA's.