Most Americans still unprepared for retirement

[SpuTTer]

Saw this on Yahoo today and it prompted me to write this. Very scary retirement situation in America.

What can we learn from these numbers. Now these numbers arent broken down by age range, but still these numbers are disturbing. Are you saving 6-10% of your income for retirement? You may want to be, and since it's taken out tax free, you will likely not miss it.

Interesting exerts from the article:

"The percentage of workers who said they have less than $10,000 in savings grew to 43% in 2010."

"Workers who said they had less than $1,000 jumped to 27%".

"Confidence in ability to save enough for a comfortable retirement hovered at 16% of respondents"

"People just don't want to think about this," said VanDerhei. "Everybody thinks they're too young to think about it, until suddenly they're too old to do anything about it."

In general, financial planners say that retirement savings, including Social Security benefits and pension, should be large enough to provide about 80% of pre-retirement income.

To reach that target, "most Americans need to be saving within the healthy range of 6% - 10% (of their salary)," said Beth McHugh, vice president of workplace investing for Fidelity Investments.

http://finance.yahoo.com/news/Most-Americans-still-cnnm-3163666925.html?x=0&sec=topStories&pos=6&asset=&ccode=

[KAM]

Keep in mind the 6-10% savings is based on how much a person/couple have already saved, but desired retirement age and years left to work till retirement play the biggest part. I personally think the 6-10% quoted by the article is too low for most people. However, I plan for worst case scenarios and calculate that we will need 100% of pre-retirement income.  I'd rather have more money than I need in my retirement years.  

[DeadcAlm]

I think I'm going to just work until my kid(s) are old enough to support me.  I don't see any problems with that.

[SpuTTer]

KAM brings up a really good point, you definitely need to save more the later you get into the game. A lot more actually because you don't have all the years of compound interest behind you.

Even with a $30,000 a year salary, saving 10%, people would acheive the goal that article was looking for in roughly 3 years. 43% of Americans have not accumulated this much retirement savings. Ouch.

Save people!

[SpuTTer]

I think I'm going to just work until my kid(s) are old enough to support me.  I don't see any problems with that.

Well, your kids are actually going to be the ones paying for the 43% of Americans who try to retire on under $10,000. With the current state of the nation, maybe the other 57% who saved are really the suckers.

[DeadcAlm]

We'll be paying for them due to welfare?  or is there some other program I'm missing?

[SpuTTer]

Welfare or something like it I suppose. Whatever program that kicks in when you are too old or hurt to work but don't have any money saved.

[DeadcAlm]

Hopefully whatever country I retire to wont have those issues

[enO]

I think I'm going to just work until my kid(s) are old enough to support me.  I don't see any problems with that.

That is the Asian way.  That is why people in china prefer to have boys because boys in general make more money/stronger and would be able to support their parents. 

Your plan is also my plan as well....good thing I have Kenz....oh wait.....

Guess that means I must SAVE!