Most Americans aren’t financially prepared for retirement.
About 44% of Americans said their retirement savings are not on track versus 36% of Americans who said it is on track, according to the Federal Reserve Board’s sixth annual survey of household economics. The rest of Americans aren’t sure whether their plan is on track or not.
Even though more than one-third of non-retired respondents said their retirement savings are on track, one-quarter have no retirement savings or pension whatsoever. The lack of retirement savings is more pervasive among the young and diminishes with age, but 13% of those 60+ have no savings. Even among those who had some savings, people commonly lacked financial knowledge and were uncomfortable making investment decisions.
About 25% of retirees were forced into retirement because of a lack of available work while an ever greater percentage noted poor health.