What Is The Average Retirement Savings?
Wondering what is the Average Retirement Savings? Most people don’t know what the average retirement savings are in this country. Many people put off saving for retirement for various reasons such as lack of current funds due to overspending or a lack of prioritizing regarding personal finance. Some may just lack the education.
Whatever the reason most Americans are not alone in their lack of retirement savings. According to the American Education Council’s Retirement Confidence survey, about 27% of Americans have less than $1,000 in retirement savings, while the average retirement account balance was $50,000. Clearly retirement savings has not been a priority among many Americans, but starting a retirement savings plan is essential for financial security. Participating in your company’s 401K plan is the easiest way. Here the employer provides very limited options, so picking a fund is not so overwhelming. In addition, many employers along with fund companies offer automatic investment plans, in which you can invest funds in your retirement accounts on a consistent basis. Once you begin to accumulate funds in the retirement account, you begin to gain momentum and realize that it is not so difficult.
Consider that a 22 year old that invests just $100 a month until retirement with an average rate of return of 8% yields $480,576.70. If you wait until age 32 to start your investment savings you, will only yield $214,256.76. While alarming as this it, it is never too late to start saving for retirement. Understand that you have more work to do that’s all. Saving for retirement is essential for a comfortable future. Systematic savings will ensure that you stay focused and have sufficient retirement savings that will last.