October 22, 2014

Retirement Savings Fall Short

  • Social Security, established in 1935, is the federal government’s largest program. It represents approximately one-fifth of the federal budget and...

With the aging of the population expected to strain government resources in the coming decades, it is crucial for Americans to save substantial amounts of money for retirement. Unfortunately, many fail to do so.

Only about six in 10 workers report that they or their spouses are currently saving, according to this year’s Retirement Confidence Survey. And many of these people are saving very little – less than $1,000 for 29 percent of the survey respondents. For 56 percent, the total value of their households’ savings and investments – excluding primary homes and defined-benefit plans – is less than $25,000.

Seventy-four percent of workers now say they expect to continue working in retirement, but that is about three times the percentage of retirees who say they are actually still working in paid jobs.

The annual random survey is sponsored by the Employee Benefit Research Institute, the American Savings Education Council and Mathew Greenwald & Associates.