Ways to Save Money

Millions of Americans Can’t Afford to Retire

Updated May 18, 2016
by Susan Shain
Contributor

The United States just broke a new record, and it’s not a good one: We have the most senior citizens working. Ever.

“Almost 20% of Americans 65 and older are now working,” Bloomberg reports.  

Why?

Because they can’t afford to retire. Sure, some seniors have chosen to continue working, but that probably doesn’t describe most.

And for those of you who haven’t yet reached retirement age, the situation doesn’t look much better.

Of American households headed by individuals ages 31-62, nearly half have nothing saved for retirement.

Of those who’ve started, the median amount they’ve socked away is a paltry $5,000.  

What do these people plan to do?

Work as long as they can — or worse, “never retire,” Bloomberg says.

How to Start Retirement Planning

I don’t know about you, but never retiring sounds pretty terrible to me.

Though I’ll always write, I definitely don’t want to depend on a job once I hit 65, which is why I finally started funneling (a little bit of!) money into a Roth IRA and 401(k).

Yes, it’s hard as hell, but so necessary. And the earlier you start — even if it’s next to nothing — the better off you’ll be.

That’s because compound interest is magic.

Don’t believe me? Check out the crazy tiny amount a 21-year-old needs to save each week to retire rich.

Just start saving something — anything — now. Even if you think you can’t.

Today’s automated tools make it simple. Check out Acorns, which rounds up your credit card spending, or Clink, which lets you invest $1 a day. Set it and forget it.

Let’s be a generation that breaks records… Just not the bad ones.  

Your Turn: Have you started saving for retirement yet?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

by Susan Shain
Contributor for The Penny Hoarder

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