rdquinn posted: " Retirement is a major concern for many Americans. With the cost of living increasing and wages not keeping up, it can be difficult to save enough money to retire comfortably. The question is, how much should Americans be saving for retirement? The an" QUINNSCOMMENTARY
Retirement is a major concern for many Americans. With the cost of living increasing and wages not keeping up, it can be difficult to save enough money to retire comfortably. The question is, how much should Americans be saving for retirement?
The answer depends on a variety of factors such as age, income level, and lifestyle. However, most financial experts agree that the average American should aim to save at least 10-15% of their income each month in order to have enough money to retire comfortably.
Unfortunately, many Americans are not saving enough for retirement. According to recent studies, only about half of all Americans are saving any money at all for retirement. This means that if you want to have enough money when you retire, it's important to start saving now!
Pretty standard stuff, right? You have probably heard something similar many times. But here I must give credit to my artificial intelligence software for composing the above.
Half of Americans not saving anything? Hard to believe, right? Apparently they expect to live on on Social Security retirement or not retire at all.
The biggest mistake we make is viewing life as two different segments - working and retired. In fact, it is one journey and our lifestyle while working determines our state when retired. In others words, spending and saving must always consider the future .
Look at the median numbers below. $134,000 will generate about $5,360 in annual income. How does that sound?
Ages 55 to 64
Average household retirement savings: $408,420
Median household retirement savings: $134,000
These are baby boomers, and the oldest among them are knocking on retirement's door — just a couple of short years from Social Security's definition of full retirement age (Ranges from 65 to 67, depending on your year of birth). About 54.5% of households headed by a baby boomer have retirement holdings.
Ages 65 to 74
Average household retirement savings: $426,070
Median household retirement savings: $164,000
The bulk of these households include someone who is in retirement, or at least of retirement age. As a result, many are at the stage when they are probably spending, rather than accumulating, savings. According to the SCF, 48% of this age group have retirement accounts.
After this point, average and median retirement account values begin to fall, as does the percentage of people who have retirement accounts. For households headed by someone age 75 or older, the median value of retirement holdings is $83,000, with an average holding of $357,920.
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