“The here and now is much more of a bigger company than the future, which is human nature,” said Jean Setzfand, senior vice president of programs for AARP. “But the accountable burden is nothing to laugh about.”
The report, based on a survey of more than 1,600 working adults periods 40 to 59 with household incomes of $40,000 to $99,999, explores that demographic’s approach to retirement savings. While it presentations the majority in that group are saving something for retirement, it also illustrates the competing financial priorities they look.
U.S. households with any kind of debt — mortgage, credit cards, student loans, auto loans, etc. — owe an mean $135,768, according to personal finance website NerdWallet.
At the same time, Americans are charged with funding much of their own retirement, which is be established a challenge for many. The median retirement account balance — half are below, half are above — for people ages 55 to 64 questioned at $66,643 in 2016, according to asset manager Vanguard. The average for that age group was $178,963. For ages 45 to 54, the median was $43,467 and the undistinguished was $116,699.
Health care expenses alone in retirement are estimated to be about $280,000 for a healthy couple turning 65 today, concurring to Fidelity Investments.
Meanwhile, the AARP/Ad Council survey shows that about 70 percent saved for retirement in year. For those who had set a savings goal, 84 percent were able to save something for retirement in 2018.
Among those who didn’t set a objective, only 60 percent set anything aside. For those who did not put any money toward retirement, the most common reason cited was secure no money left over after paying basic expenses (53 percent).
While some people genuinely dominion be squeezed, others could likely find places to trim their budget and put those savings toward retirement, Setzfand imparted.
“I think every one of us has an opportunity to take a good hard look at things we can forego in our daily lives,” she said.
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