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Saving too little

The U.S. is facing a retirement crisis. The simple fact is that most workers are saving too little to retire, according to the Employee Benefits Research Institute (EBRI), which tracks pension issues.

An institute study released recently found that the percentage of workers saving for retirement dropped to 66 percent from 75 percent in 2009. One-third said they had saved nothing for the years when they were no longer working.

Of those surveyed, 28 percent had no confidence that they would have enough to retire comfortably and 21 percent were “not too confident."

So about half of American workers are facing retirement with considerable economic uncertainty, and with good reason: 57 percent of the workers surveyed reported less than $25,000 in household savings and investments.

Meanwhile, many of those facing a pinched retirement, about 36 percent, planned to work beyond the minimum retirement age for Social Security of 62.

Living only on Social Security guarantees a frugal retirement. Benefits max out at $1,320 a month, $15,840 a year, at age 70.

It’s better to deal with the retirement financial crunch sooner rather than later, whether through better savings instruments or more incentives to save.

Evansville (Ind.) Courier & Press

 


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