Investing great John Bogle, founder of The Vanguard Group, believes our nation’s retirement system is headed for a serious train wreck. Anyone who looks at the evidence would totally agree with his discovery. He recently examined several outstanding research studies on the state of retirement savings in America, and here’s an excerpt of the Top 5 of 17 alarming facts:
- Only 42% of private sector workers age 25 to 64 have any pension coverage in their current job. That’s lower than the 50% who had pension coverage back in 1979. (Source:Center for Retirement Research)
- 30% of workers in a 2012 study reported that they had less than $1,000 in savings and investments. (Source: Employee Benefit Research Institute)
- A 65-year-old couple retiring in 2012 is estimated to need $240,000 to cover medical expenses throughout retirement. (Source: Fidelity Investments)
- Just 14% of American workers are very confident they will have enough money to live comfortably in retirement. (Source: Employee Benefit Research Institute)
- Only 16% of American workers are very confident that their investments will grow in value. (Source: Employee Benefit Research Institute)
Take a closer look at your retirement
These are just some of the facts that are included in the studies referenced in Motley Fool. It’s not big news that you could be one of the many Americans that is at risk of this pitfall. We believe with the right guidance and education, we could help you position yourself better for your future.
For more detail, we encourage you to read the studies in their entirety. One big takeaway is that many Americans are saving far too little for their retirement. Many of these individuals who are saving are making costly errors that result in poor returns. Mr. Bogle believes that our society tends to be wired for short-term thinking. Long-term strategies that are most needed right now in tackling this retirement crisis.