(NewsReady.com) – When Americans begin working when they’re young, there’s an expectation they will be able to enjoy the fruits of their labor when they get older. Retirement is something many people look forward to. However, an increasing number of workers don’t believe they will ever be able to slow down and enjoy their golden years.
An Axios/Ipsos poll conducted in July found a startling number of Americans said they didn’t think they would ever be able to retire. Twenty percent (20%) of respondents said they probably won’t retire. Of that faction, 70% said they won’t be able to afford to quit working, while 19% don’t want to take it easy.
About 44% of those under 55 said economic issues beyond their control have caused them to change their retirement plans. Most Americans who haven’t retired, 62%, told the pollster that Social Security would cover less than half of their current expenses.
According to the Bureau of Labor Statistics, the average person aged 65 and older spends just over $52,000 annually on expenses. That’s about $4,300 per month. The maximum amount someone can receive from Social Security if they retire in 2023 at age 62 is $2,572. That’s a huge shortfall if the only money a retiree has is the money they put into the national retirement fund.
For younger Americans, there’s still time to get their retirement savings on track so that they do not have to work for the rest of their lives if they don’t want to. Ideally, workers should start saving for retirement as early as possible. By the age of 30, they should have anywhere from half to one and a half times their annual income saved. That means that if they make $50,000 per year, they should have saved between $25,000 to $75,000.
If you feel like you aren’t on track, or haven’t started saving, speak to a financial adviser about what you can do to get started.
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