GOBankingRates survey finds 42% of Americans will retire broke

Finance


Financial planners typically recommend saving 10 percent to 15 percent of your income annually to save enough for a comfortable retirement. If you’re not setting aside this much, review your spending to see what nonessential expenses can be cut so you can boost retirement contributions. And don’t forget to increase contributions with each pay raise.

If you don’t have a workplace retirement plan, you can open an IRA or Roth IRA through an investment firm such as Fidelity, T. Rowe Price or Vanguard. If you’re self-employed, you can save for retirement with a SEP or solo 401k, which also can be opened at an investment firm.

But if you’re already close to retirement age and don’t have much saved, you can stretch your retirement savings by working longer. Other options include getting a part-time job in retirement or relocating to a place with a lower cost of living — perhaps even outside the U.S.

Methodology: The GOBankingRates survey posed the question, “By your best estimate, how much money do you have saved for retirement?” Respondents could select one of the following answer options: 1) “Less than $10,000”; 2) “$10,000 to $49,999”; 3) “$50,000 to $99,999”; 4) “$100,000 to $199,999”; 5) “$200,000 to $299,999”; 6) “$300,000 or more”; or 7) “$0.” Responses were collected through three separate Google Consumer Surveys conducted Feb. 6-9, 2018, and responses are representative of the U.S. online population. Each survey targeted one of three age groups: 1) ages 18 to 34, 1,001 respondents; 2) ages 35 to 54, 1,001 respondents; and 3) age 55 and over, 1,003 respondents.

An additional survey was conducted to target people who have no retirement savings and find out why. A screener question was used to collect responses only from 1,000 respondents who said they do not have retirement savings. Respondents were then asked, “Which of the following is the main reason you do not have any retirement savings?” Respondents could select one of the following answer options: 1) “I don’t make enough money to save”; 2) “I won’t need retirement savings”; 3) “I’m prioritizing paying down debt”; 4) “Job doesn’t offer a plan”; 5) “Struggling to pay bills”; or 6) “Used money for an emergency.” Responses were collected by a survey conducted Feb. 6-9, 2018, using Survata. Survata categorizes the ages of their respondents in the following groups: 1) 25 to 34, 2) 35 to 44, 3) 45 to 54, 4) 55 to 64, 5) 65 and over.

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This article originally appeared on GOBankingRates.



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