According to bankrate.com, 68% of Americans are unable to reach their monthly retirement savings goal. This seems like a relatively large number to me - a surprisingly high number actually. The survey implies that these folks have actually set goals for their retirement. The number might not have been so surprising if it included people who have not made any plans for retirement. The percentage also may be a bit suspect since it was from a survey conducted by bankrate and coincided with their rollout of their new retirement channel. . . However, I am inclined to trust the figure.
I am most interested in why 7 in 10 people are not meeting their goals.
- What percentage of the population has even established monthly retirement savings amounts?
- Are they spending the money on needs or luxuries?
- By how much are they falling short?
- Why haven’t more of them set up automatic debits or automatic payroll deductions?
- Are these people planning to collect social security?
- Do these folks even thing about retirement?
- What are they spending their money on that is more important than retirement?
Many of the 68 percent would benefit from reading Digerati’s post on how to force yourself to save. I greatly increased my retirement contributions this year. Not because I could afford it, but because I needed to get something started. The increased amount may mean that I have to find a third job, but I would rather work three jobs in my 30′s than work full-time in my 70′s.
Unless rocket finance turns into a cash cow. . .
I’m not holding my breath.