1-in-4 workers have saved less than $1,000 for retirement

Register now

1 in 4 workers have saved less than $1,000 for retirement
A report from the Employment Benefit Research Institute says that nearly 25% of workers have saved less than $1,000 for retirement, according to this article from CNNMoney. Almost 50% of the workers polled claimed to have less than $25,000 in their retirement accounts. For an online calculator, clients with this amount in retirement savings are on track if they are aged 30, but are behind if they are older.

Minorities are making effort to close retirement savings gap
A survey by Ipsos and USA Today has found that more minorities than white Americans are discussing retirement with their families. Fifty percent of Hispanics and 43% of African Americans who participated in the survey said that they talk to their families about their preparations for their golden years, while 40% of whites claimed to have been doing the same. “It’s the evolution of time, education, opportunities, and access to information. Information levels the playing field,” says a certified financial planner.

Retirement for aging parents costs more than your clients realize
Clients who are helping their parents prepare for retirement may underestimate the living and other costs that their elders will have in their golden years, according to this article on Forbes. To ensure that their parents will have a comfortable retirement, clients should prod their parents to plan as early as they can and expect that the costs in retirement to be more than initial estimates. They should also encourage their parents to minimize spending so adjustments will not be difficult when their retirement income dwindles over time and medical expenses shoot up.

The new retirement is ... not to retire
Many retirees opt to go back to work, pursuing an encore career or a new job, according to this article on CNBC. Most of them are motivated to work again because they want to maintain an active lifestyle and not really to earn money. Three of these retirees share their stories in this article.

For reprint and licensing requests for this article, click here.