More than a third of Americans have no money saved for retirement.
Details in the new Bankrate.com report get even scarier.
69% of 18-29 year-olds haven’t saved anything for retirement, along with 33% of 30-49 year-olds, 26% of 50-64 year-olds and 14% of people 65 and older.
There is some good news. Those who are saving are starting earlier. Twice as many 30-49 year-olds started saving in their 20s as opposed to their 30s. While 50-64 year-olds were only slightly more likely to have started saving in their 20s than their 30s.
Despite their lack of retirement savings, millennials feel more financially secure than any other age group. They also feel more secure in their jobs and more optimistic about their current financial situation than any age group.
Bankrate.com chief financial analyst Greg McBride says, “The key to a successful retirement is to save early and aggressively, but even those on the cusp of their golden years should have some money allocated toward equities as opposed to all cash and bonds.”
Bankrate.com’s August Financial Security Index registered at 100.1. Any number above 100 illustrates improved financial security compared to one year ago, while any number below 100 reflects deteriorating financial security.
Despite their lack of retirement savings, millennials feel more financially secure than any other age group. They feel more secure in their jobs and more optimistic about their current financial situation than any other age group.
Job security, net worth and overall financial situation are all areas in which Americans note improvement over one year ago.
However, there are twice as many Americans less comfortable with their savings (compared to one year ago) as those that are more comfortable.
Men’s feelings of financial security slipped, while women noted improved financial security since last month. However, men still note improved financial security compared to one year ago while women still feel a slight deterioration.
Americans’ comfort level with debt remains mixed. Sentiment slipped slightly this month, as those less comfortable with debt compared to last year edged out those more comfortable. At present, 24% are less comfortable while 23% are more comfortable than one year ago.
Photo credit: ROBERT SULLIVAN / 2007 AFP