Recently, Northwestern Mutual’s 2018 Planning & Progress Study, revealed that 78% of 2003 American respondents were concerned about running of money in retirement. 66% believed they were going to outlive their retirement savings. This further underlines the belief among financial planners that investing as soon as you are able in your retirement is the prudent move.
Although some Americans have $200k plus stashed away for their retirement, 21% don’t have a penny. 10% have less than $5,000.
The good news is that it’s rarely too late to start.
Similar studies have confirmed these findings. Those aged between 55-64 have a median retirement saving of $120,000. A far cry for the recommended $1,000,000 many financial advisers recommend.
Other reports from the Economic Policy Institute show that the median retirement savings between those aged 32-61 are just $5,000.
It is never too Late to Save for Retirement
According to Northwestern Mutual’s Rebekah Barsch, vice president, with a bit of thought and dedication, it is never too late to start saving for retirement.
She said: “The good news is that it’s rarely too late to start.
“In fact, we often compare financial and physical fitness because the hardest part is taking the first step. However, once people commit to a strategy and start seeing positive results, they’re motivated to meet and even exceed their goals.”
The issue is not an American one. Lack of retirement funds is an issue across the western world. So no matter if you’re in New York or London, it is clear that saving for retirement should be started as early as possible, regardless of age.
Get your Finances Ready for Retirement
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