A recently released Bankrate survey reports Americans are saving little or nothing of their annual income and half could end up struggling in retirement.
20% of those surveyed save 0% of their annual income while those who do save were found to not be saving enough. Experts recommend setting aside 15% of one’s annual income, but of those surveyed– 16% report saving at the 15% level, 25% report saving 10-6%, and 21% save 5% or less.
The survey notes those 55-64 years of age, who do have retirement savings, have a median savings of $120,000, and those 65-74 years old have saved a median of $126,000. Even when factoring in Social Security, these reserves will not last long in the absence of paychecks ($1,342 is the 2017 average monthly Social Security benefit) exposing seniors to the risks of a lower standard of living in retirement and/or an inability to afford an emergency expense.