Melville, New York – A recent study conducted by Clever revealed that retirees in the United States are facing a looming crisis when it comes to their retirement savings. The study found that a significant percentage of retirees have already outlived their savings, with about 40% expressing serious concerns about the possibility of running out of funds. This financial challenge has led to a growing sense of unease among retirees, with 66% of them believing that the country is indeed in the midst of a retirement crisis.
Financial disparities between retired men and women are also a significant issue, as retired women are 33% more likely than men to struggle financially during retirement. The study highlighted that nearly a third of women have no savings set aside for retirement, compared to only 20% of men. This disparity underscores the importance of addressing gender-based financial inequalities in retirement planning.
Experts recommend that retirees aim to have a little over $1 million saved to retire comfortably. However, the reality is that most retirees fall far short of this goal, with the average retiree having only $142,500 in savings. This lack of adequate savings has left nearly half of retirees unprepared for the possibility of outliving their retirement funds, highlighting the urgent need for effective financial planning strategies.
Looking ahead, concerns about retirement are not limited to current retirees, as younger generations are also expressing worries about their financial futures. Gen Zers, in particular, are skeptical about having enough savings for retirement, with a significant percentage not expecting to retire at all. This lack of confidence is attributed to current low wages, which are seen as a major barrier to building adequate retirement savings for future generations.
In response to these challenges, Rep. Richard Neal from Massachusetts has introduced a bill that would require employers with more than 10 employees to automatically enroll their workers in retirement accounts. This proposed legislation aims to address the issue of under-saving for retirement by making it easier for individuals to save through their workplace. If passed, the bill would provide a pathway to retirement security for more Americans and reduce reliance on employer-based retirement plans.
Overall, the findings from the Clever study and the proposed legislation highlight the urgent need for comprehensive solutions to address the looming retirement crisis facing Americans of all ages. By implementing effective financial planning strategies and policy measures, individuals can better prepare for a secure and stable retirement in the future.