Saving is not a priority, according to a recent AARP-Ad Council survey. Fewer than half of Americans in their 40s and 50s with household incomes from $40,000 to $99,000 listed retirement as one of their top three savings priorities. Only 21 percent listed retirement as their number one priority for 2019.
Some are not focused on saving because they are paying down debt. For those ages 35 to 49, the average personal debt is $39,000. 33 percent of this cohort said paying off debt is their top savings priority of 2019. Home mortgages account for 32% of what they owe, followed by credit card debt, then car loans and education debt.
The research showed that when people committed to putting money towards retirement in 2018, they overwhelmingly followed through (84 percent), however, only 40 percent of those surveyed set a goal. For those who did not set a goal, 40 percent saving nothing for retirement.
Almost 7 in 10 Americans who are approaching retirement have less than a year’s income saved for retirement, according to the National Institute on Retirement Security.
For those who set a retirement savings goal, many chose to do at least one of the following:
1. Increasing contributions to employer-sponsored retirement plans to get the full company match.
2. Placed additional income (bonuses, raises, etc) directly into retirement savings.
3. Reduced everday expenses and reigned in spending.
Saving enough for retirement can seem overwhelming, but taken one day, one month, or one year at a time, it becomes possible to build up your retirement fund. Setting a goal is key, as well as following through on specific action points which will help you meet your goal.
We, at TABER Asset Management, can help you increase your savings rate allowing you to create more wealth for your retirement years. We are a fiduciary and financial advisory firm that offers investment management, wealth management, and financial planning services to clients across the U.S. Please contact us at 515-557-1860 or firstname.lastname@example.org to get started on the path to financial independence today.