A quarter of Americans have no retirement savings

pensioner

(JD Mason, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Charlotte Edmond, Formative Content


A quarter of non-retired adult Americans have no retirement savings or pension at all. Only 36% think their savings are on track.

While financial preparedness increases with age, a new report from the US Federal Reserve finds inadequate savings are still common among those approaching retirement. Even among those over 60, 13% have made no provision for stopping work, while fewer than half (45%) think their savings are on track.

And despite tax penalties, a fair share of people have chosen to withdraw funds from their pension pots in the last year.

Image: Federal Reserve

More than a quarter of American adults consider themselves retired, with nearly half of all retirees last year giving up work before they were 62. A further quarter retired between the ages of 62 and 64.

Filling up the bank

Financial literacy among the general population is fairly low – the vast majority of adults failed to answer questions designed to test their knowledge about savings. And many people, particularly women, expressed discomfort about making investment decisions.

Image: Federal Reserve

Ethnicity also has a role to play in financial planning. Black and Hispanic people are more likely than white people to have no retirement savings, and are less likely to view their finances as on track.

 

The global picture

The picture in the United States is mirrored around the world. Investing In (And For) Our Future, a new report by the World Economic Forum, has highlighted the degree to which retirees are going to outlive their savings.

In six major economies, retirement pots will run dry well before they are no longer needed: the savings gap in some cases is up to 20 years. Japanese retirees and women are the most likely to outlive their savings.

Image: Investing In (And For) Our Future, World Economic Forum

The savings shortfall has been driven to a large degree by governments coming under increasing pressure to cut back on policies that benefit older generations, and the deterioration of employer-sponsored pension plans.

Individuals have found themselves increasingly responsible for their own savings plans, but have not responded quickly or adequately enough.

With people living to an older age, taking a long-term mindset earlier on in life is crucial to bridging the divide and ensuring they can enjoy old age in comfort.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

European financial values on the rise

The EU tells the bare truth to the UK that there is no such thing as easy divorces

State aid: Commission invites comments on simplified rules for State aid combined with EU support

European markets itchy with short-term disturbances

JADE Spring Conference 2018 is on its way: Young entrepreneurs gather in Brussels to shape Europe

New UN book club helps children deal with global issues

EU and World Health Organisation team up to boost access to health services in developing countries

As inequality grows, the UN fights for a fairer world

“16+1” Cooperation injects new vigor into China-Europe cooperation

CO2 emissions on the rise for first time in four years, UN agency warns

ILO and EIB join forces for more and better quality employment

Yemen: ‘Living hell’ for all children, says UNICEF; Angelia Jolie calls for ‘lasting ceasefire’

This Netherlands football stadium creates its own energy and stores it in electric car batteries

Consumer protection: Commission welcomes political agreement by Council on the Representative Actions Directive

MEPs criticise “America first” policy

Ukraine: Temperatures plunge amid rising humanitarian needs

Alarming level of reprisals against activists, human rights defenders, and victims – new UN report

The EU Parliament endorses tax on financial transactions

UN rights expert calls for end to ‘purgatory’ of ‘international inaction’ facing Myanmar’s remaining Rohingya

Here’s a reason to feel cheerful – the world is full of Good Samaritans

Egypt urged to free prominent couple jailed arbitrarily since last June: UN rights office

70 years after the Universal Declaration of Human Rights, this is why we need dignity more than ever

EU Parliament: Deposit guarantee and trading platform transparency sought

Migrant workers sent more money to India than any other country last year

The European giant tourism sector in constant growth

As human caravan moves through Mexico, ‘full respect’ needed for national control of borders: UN chief

UN expert ‘shocked’ by Egyptian reprisals against human rights defenders she met

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

COP21 Breaking News_04 December: Launch of CREWS, climate risk & early warning systems

The Monetary Union drives Europe into dangerous paths, CoR demands an EMU of regional content

UN-backed intercultural dialogue forum urged to keep working to ‘bridge gap between the like-minded’

EU budget: Commission proposes most ambitious Research and Innovation programme yet

Violence on the rise in Darfur following Sudan military takeover, but UN-AU peacekeeping mission maintains ‘robust posture’

New Mozambique storm rips off roofs, brings lashing rain as aid response kicks in

U-turns on Global Compact ‘reflect poorly’ on countries concerned: senior UN migration official

Logo Mania: A call to action to our crisis of connection

UN chief reaffirms commitment to untying ‘Gordian knot’ of Middle East conflict and instability

MWC 2016 LIVE: EC adds Brazil to partner tally

World must avoid a new Cold War, UN chief tells economic forum in Russia

These European countries produce the most plastic waste per person

Trump goes ahead with plan to undo globalization; targets China and EU

New Zealand can improve well-being through better policymaking and reforms to housing and migration policy

Want to cut greenhouse gas emissions? Look to digital technologies

Water pollution is killing millions of Indians. Here’s how technology and reliable data can change that

Mergers: Commission clears Telia’s acquisition of Bonnier Broadcasting, subject to conditions

UN cooperation with League of Arab States ‘pivotal’, UN chief tells Security Council

It’s time for global businesses to accept local responsibility

EU ready to relinquish its internal tax havens

Mechanism to protect democracy in the EU needed more than ever, says the EP

Why cities hold the key to safe, orderly migration

UN chief of peace operations honours fallen Chadian ‘blue helmets’ serving in northern Mali

SDGs and the historical and economic impact on Brazilian health

Heard about deepfakes? Don’t panic. Prepare

Donald Trump’s victory is a great opening for global EU leadership on the sustainability agenda

Releasing trapped value is key to success in the digital world

ECB to people: Not responsible if you lose money on Bitcoin, your governments are

GSMA Announces Latest Event Updates for 2018 “Mobile World Congress Americas, in Partnership with CTIA”

Children paying a high price for inequality

Refugee crisis: Commission proposes a new plan urging EU countries to help Italy

Climate finance for developing countries reached USD 71 billion in 2017

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s