Most Americans say that they are focusing on saving for retirement, as they get older. Who wants to admit that nearly every penny they make each paycheck is going to bills, other expenses, and other necessary items? But when you take a look at how much individuals actually have saved in their retirement funds, it’s clear that most Americans are far from their goals.
When surveyed, the average Baby Boomer has a goal of creating enough money in their retirement fund to be able to live off of $45,500 a year during their retirement years. However, the actual average retirement fund of an American today only has an estimated $136,200 in it. With only that little of funds, that comes out to about an annual “allowance” of about $9,129.
Rob Kapito, the president of BlackRock, has said that the “nest egg” is broken and it actually misleads some investors into the wrong guess of how much they should actually want and need in their retirement funds. This leads to not enough savings to reach their goals.
While most of the world is becoming more and more tech-dependent each day, many individuals still set aside money for their retirement funds in cash. It’s been said that 65% of American’s retirement funds are actually in cash. Many Americans say they want to have a cash security blanket before they think about investing.
One way to make sure you are set in retirement is to create plan that will help you pay your living expenses and save your money for retirement. The numbers are shocking: less than 25% of set aside a consistent amount of money for retirement savings and only 14% actually have a financial plan.