Not Saving Enough Is Biggest Regret For Retirees

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It’s easy to think that your financial problems are special to you – but research in America shows that the same worries affect retirement savers there as well.

Looking back, like their British counterparts, most Americans regret that they did not start saving for retirement much earlier.

Nearly one in five have this concern, according to the survey by financial firm Bankrate.

That’s followed by fears for one in seven that they do not have enough cash saved to cope in an emergency

But fewer Americans are worried about debt – with only one in 10 consider the balances on their credit cards are too big and even fewer – just one in 12 – believe they made the wrong decisions about student loans.

1 in 5 have no retirement savings

Booking.com

Meanwhile, bank Northwestern Mutual found that a fifth of Americans have no retirement savings and a third have less than $5,000 in the bank for when they finally stop working.

The bank explains that failing to save could cost people hundreds of thousands of dollars by the time they retire.

Contributing the maximum in to a Roth IRA at 25 years old would generate a pot of $900,000 for retirement with a return of 6% by the age of 65. Even half that amount would give a fund of $400,000.

More than half of Americans (55%) believe they will have to carry on working after age 65 because they will not have enough money to pay the bills – and many are especially concerned about rising health costs.

No time to save like now

But the American saving problem is so bad that not only do too few people have retirement savings, most have no money set aside for emergencies either.

“Time is your greatest ally when saving for the future,” said Greg McBride, chief financial analyst at Bankrate. “To workers of all ages, there is no better time than the present to increase your 401(k) contribution or fund an IRA.

“Anyone looking to lower their expenses to free up money for saving can consider downsizing their home, trimming their grocery bill or make eliminating debt a priority.

“Those who can take on extra work can bring in more cash by renting out spare rooms, reselling belongings online or taking freelance work.”

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