When it comes to saving for retirement, it’s easy to put it off when our golden years seem far off. While putting money away isn’t easy, especially during financially stressful times, it’s absolutely necessary. Saving is imperative for comfortable retirement considering that Social Security will be teetering with insolvency over the next decade. That’s a financial reality too real to ignore.
Most Americans are concerned about being able to afford retirement. These concerns are well founded. Compared to 50 years ago, life expectancy has risen over eight years, and more years of retirement will require more savings. While inflation and the high costs of living continue to impact consumers’ wallets, millions of Americans are facing retirement without any savings.
Optimistically, a survey conducted by Blackrock found that confidence among those with retirement plans increased by 12 percentage points in the last year. However, many people, from Baby Boomers to Gen Z, reported being confused about how to save and how much to save.
The report underscored that savers want to find solutions to retirement insecurity – and employers know there is a need to act. Almost 100 percent of plan sponsors feel responsible for helping their employees generate income in retirement, with 72 percent feeling that the risk of outliving retirement savings has become an increasing concern.
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Steve Pociask is president and CEO of the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.org or follow us on X @ConsumerPal.