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Bankrate.com has just released alarming survey data suggesting that 10% of Americans aren’t saving for retirement. As if 10% wasn’t alarming enough (in an improving economy), the number is growing.
The national telephone survey, which includes a number of personal finance questions, asked how much people were contributing this year compared with last year. Among those who took the survey, 10% said they “did not contribute this year or last year.” That’s the highest percentage since Bankrate started asking the question in 2011. – Janna Herron, Bankrate.com, 8/18/15
Saving For Retirement – Bright Spots
Bankrate.com says there some bright spots shining on those that were saving for retirement:
- 19% are saving more in their retirement savings accounts when compared with last year.
- 14% are saving less than they were a year ago. That’s an improvement from 2011, when 29% reported saving less.
- More than half are saving the same amount.
Retirement Mistakes To Avoid
There are mistakes to avoid when planning for retirement. 3 of the biggest mistakes are: 1. Not saving at all (less than 1 in 5 save anything at all on a monthly basis). 2. Not fully funding your 401K (33 percent of employees don’t participate in a 401k program). 3. Accepting high risk investments in the stock market (nearing retirement means you should be less risk tolerant).
One Retirement Truth
The primary piece of advice you’ll hear from most retirement experts is that you need to save early, and save often. Using compound interest to your advantage, your money can grow exponentially, with minimal risk (if played properly). Gary Foreman over at US News & World Report offers this insightful tidbit regarding compound interest: “Time is on your side. The longer money compounds, the faster it grows. Money growing at 6 percent per year will double in about 12 years, but it will be worth four times as much in 24 years.”
The bottom line is that retirement maybe a far off fantasy for some of us, but for those of us that have a plan, our golden years just might be golden!
The awesome post 10% Of Americans Aren’t Saving For Retirement appeared first on The Senior List.