Hey, it’s just another survey. You can find others indicating most retirees are doing quite well. Even in the pandemic many retirees saw their savings grow.
Who knows the real truth? I do know it’s not found in surveys where there is an incentive to not be accurate. But I also know many people are not prepared for retirement.
But if retirees are in an awful state, why? I found this article of interest. Take a look at how many of the reasons reflect life choices, actions not taken or short-sighted decisions on the road to retirement.
A recent survey conducted by Clever found that, on average, retirees have just $191,659 saved for retirement.
Most Retirees Believe They Will Outlive Their Savings
According to the survey, 51% of retirees believe they’ll outlive their savings entirely — which is not too surprising given how little many have saved for retirement.
“Even more grim, 65% of retirees reported that they’re not financially secure,” said Taelor Candiloro, research analyst at Clever Real Estate. “So not only are most retired Americans financially insecure, but they’re worried about reaching a point where they have to drastically adjust their standard of living.”
The Majority of Retirees Have No Retirement Savings
The majority of retirees (30%) reported having nothing in retirement savings and investments, while the next highest proportion of retirees (27%) had under $50,000. Only 18% of retirees report having $400,000 or more in savings and investments.
The high percentages of retirees with little to nothing saved may have to do with factors beyond their control.
“We’ve certainly seen multiple health, environmental and financial crises surface in the last few years — all of which have increased financial strain on Americans,” Candiloro said. “There are also a plethora of social and economic variables that impact how Americans are able to accumulate wealth during their working years. All of these things collectively impact our ability to save for retirement — or our ability to retire at all for that matter — and could contribute to the lack of savings retirees are reportedly experiencing.”
Another factor could be the lack of access to employer-sponsored retirement savings plans. Nearly one in three retirees (31%) said that their company didn’t offer 401(k) plans or pensions.