Some Older Americans Have Little or No Savings
When it comes to retirement savings, older Americans aren't in good shape.
According to a new study from the Government Accountability Office (GAO), when it comes to retirement savings, older Americans aren't in good shape. The GAO found that in households with members aged 55 or older, almost 29 percent have no retirement savings or traditional pension plans.
Even among those who do have retirement savings, the numbers could be better. NBC News reports that the GAOs study found that the average savings for a household with members between 55 and 64 years old was only $104,000. For households with members 65 to 74 years old the average retirement savings was slightly better, at $148,000. Break those figures down and it's the equivalent to an inflation-protected annuity of $310 and $649 a month, respectively. Is that enough, when combined with Social Security, to live on? That depends on how you live.
We understand that saving can be difficult, especially if you're late to the game. So what can you do? Trick yourself into saving more. As the Today show noted, try putting up photos of your savings goal as a reminder to not spend. A photograph of you and your spouse can serve as a mental note that you are saving to live a longer and happier life together. Also, think about spending in other ways than just dollars. That $50 for a shirt is not just $50, it’s taking away from that trip to Europe you've always dreamed of during your golden years.
Article was written by Chris O'Shea for SavveyMoney.