The job market might be strong and salaries might be increasing, but scores of employees in the U.S. have little in the way of savings for retirement. That’s according to a new Federal Reserve poll released Thursday. According to The Wall Street Journal, the Federal Reserve found that one-quarter of Americans surveyed said they don’t have money for retirement. What’s more, 44% of poll respondents said they’re worried that they aren’t saving enough.
While only 26% think they have enough for retirement, one of those aged 18 to 29, 42% have nothing in the way of retirement savings. Of the group, they stated they would bypass making credit card, mortgage, lease, and utility payments. Of the poll respondents, 40% said that they don’t have enough to cover a $400 expense if it was to arise. They’d need credit cards or loans to cover it.
Three out of four respondents indicated they are doing good, which is up from 63% in 2013. Close to two out of three of the polled said they are either good or excellent, noted the report. Household finance gaps were found by the Fed. That gap of 12% points has stayed the same as 2013, noted the report.
In fact, the number of Fidelity 401(k) accounts with a balance of $1 million or more recently struck 180,000. These 401(k) millionaires are, in large part, regular people that are only taking advantage of the 401(k).
Just how much should you be saving for retirement?
The answer to this is immensely personal and depends upon spending habits and your way of life, expenses, but there are a couple of guidelines to follow if you would like to retire. Fidelity urges saving 15%, and that amount includes any contributions from your business as well as contributions from your paycheck.
What if you don’t have a 401?
If you’re one of those many Americans without access to a 401, do not stress. Most importantly, do not let this be a deterrent for not saving for the long run. Whether or not you have access to your 401, at some point, you will want to retire and you’ll need to have money saved.