More Than 40% of Americans Lack a Retirement Savings Plan
A new survey finds nearly half of Americans have never calculated how much money they will need in retirement, leaving them financially unprepared.
More than four in ten Americans are approaching retirement without a financial roadmap, according to new survey data highlighted by MarketWatch, underscoring a widespread gap in long-term savings planning across the country.
The core finding is stark: nearly half of Americans have never run the numbers on what retirement will actually cost them. Without a baseline estimate, financial planners warn, workers cannot determine how aggressively to save, how to allocate investments, or when they can realistically stop working.
Read more Roth Conversion Advice for Retirees in Their 80s: Does It Make Sense? →
The problem carries particular weight as traditional pension coverage has shrunk over decades, shifting the burden of retirement security squarely onto individuals. Workers who rely solely on Social Security — which was designed to supplement, not replace, income — risk a significant drop in their standard of living upon leaving the workforce.
Financial advisers broadly recommend starting retirement projections as early as possible, accounting for variables such as life expectancy, healthcare costs, inflation, and anticipated lifestyle expenses. Even a rough calculation, experts note, is substantially better than no plan at all, and can motivate higher contribution rates to employer-sponsored accounts or IRAs.
The data suggests millions of Americans may be sleepwalking toward a retirement funding shortfall, a concern that has drawn increasing attention from policymakers, consumer advocates, and financial institutions alike. Continue reading at MarketWatch.com
