42 percent of Americans will retire broke finds a study from GOBankingRates. Their 2018 Retirement Savings survey found 42 percent of Americans have less than $10,000 saved and if that amount doesn’t change they’ll retire broke since that’s not enough to cover even a year’s worth of expenses. According to the Bureau of Labor Statistics, on average, adults 65 years of age and older spend nearly $46,000 a year.
To make matters worse, 14 percent of respondents have nada, zilch saved for retirement.
So, why aren’t Americans saving? According to respondents, the top two reasons are they don’t make enough money or are struggling to pay bills. Other reasons are they wouldn’t need retirement savings, they used savings for an emergency, their job doesn’t offer a retirement plan, or they’re prioritizing paying down debt.
But, the good news is the number of people who will retire broke in retirement has decreased, with the percentage being 55 percent last year.