According to a 2018 study of 2,003 adults, 21 percent of Americans don't have any savings, and a third have less than $5,000 in their bank account. As you can imagine, that alarmingly small amount of money will last for a few months, tops.
In the same study, it was found that it’s not just millennials struggling to plan for retirement—33 percent of boomers have about $25,000 or less in their retirement fund.
When it comes to planning for retirement, Americans need to be thinking about retirement sources like 401(k), IRA, pension, and bank accounts. Everyone needs to make a financial decision on when to retire so they can budget their retirement savings and experience leisure in their old age.
Whether by choice or necessity, people retire at all ages due to many factors such as the Social Security retirement age, Medicare, their savings, health, and more. While the average American retires at 62 years old as reported from Gallup, every individual will experience retirement at a time that’s unique to them.
It’s imperative for Americans to make a plan for retirement, not just collect savings. Planning for a post-retirement future can happen with simple steps, like setting up a personal IRA. Additional ways to prepare for retirement include:
There are so many benefits to planning for your retirement now, rather than later. First, investing in your financial security will free you of the worry that will come if you don’t. Plus, there are tax deductions that you and your employer will receive if you set up an employee retirement plan, for example. Each and every contribution you make, no matter how small, will give you that amazing sense of accomplishment toward your retirement fund. Experience financial independence by setting realistic goals and managing your finances.