The website CNNMoney reported back in May that a shocking number of Americans, 49% to be exact, are not setting aside funds for retirement. In a country where 77 million baby boomers will reach retirement age within the next 20 years, that is a chilling statistic. The Life Insurance and Market Research Association, known as LIMRA, conducted the survey cited by CNNMoney.
A June 12th article in the Fiscal Times noted that, in the US, “10,000 people reach retirement age every day, while 401(k) accounts have been drained by the recession, pension funds are strained, and social security funds are near the breaking point.”
As a whole, Americans have gotten out of the practice of saving money. In tougher economic times, the percentage of savings from disposable income was much higher. Between 1960 and 1980, our personal savings average was 14.6%. Of those Americans who are managing to save a bit for their Golden Years, the average amount is 5.8%, which falls far behind other countries such as Austria, Australia, Portugal, Germany, and Sweden, where putting aside 9% of one’s disposable income is standard.