Data and Research

Americans Falling Behind on Retirement Savings

Those who feel they are financially savvy do far better than those who do not.

By Lee Barney editors@assetinternational.com | March 07, 2017

More than half, 52%, of American workers do not think they are saving enough for retirement, Investopedia found in a survey of 700 employed investors. That number jumps to 58% among novice investors. On the other hand, expert investors are seven times more likely to be ahead of their goals, Investopedia found.

“That more than half of Americans with above-average savings feel that they have inadequate retirement savings is a nationwide problem that needs to be addressed,” says David Siegel, chief executive officer of Investopedia. “These concerns coming from investors will only be magnified when looking at the general population. The first step to alleviating this burden and getting people on track is education.”

The survey also found that 78% of those who feel they are behind on their retirement savings contribute to a workplace retirement plan, which indicates, Investopedia says, that people need to make additional efforts to save.

Only 18% of those who participate in their retirement plan receive professional advice. A mere 10% think they are ahead on their retirement savings. Among this group, 82% have an individual retirement account (IRA). For those who think they are on track, 52% have an IRA, and among those who are behind, only 33% have an IRA.

Another 28% of the survey respondents think they are on track, and the remaining 10% were unsure of their status as it relates to retirement savings.

Among those 50 or older, 60% are afraid they may have to delay their retirement, and the cost of health care is their biggest concern. Among Millennials, 81% are worried that Social Security may not exist by the time they retire.