Author Topic: Bankrate survey: 36% of Americans not saving for retirement  (Read 7593 times)

DollarsAndDissonance

  • 5 O'Clock Shadow
  • *
  • Posts: 43
  • Location: Pacific Northwest, USA
Bankrate survey: 36% of Americans not saving for retirement
« on: August 18, 2014, 11:02:43 AM »
http://www.csmonitor.com/Business/new-economy/2014/0818/Why-one-third-of-Americans-aren-t-saving-for-retirement

Some crazy stats about retirement savings in a new Bankrate survey, including:
  • 69% of 18- to 29-year-olds have no retirement savings
  • 26% of 50- to 64-year-olds have no retirement savings
  • Some of the non-savers told Bankrate that they are planning to work for their entire lives and don't need to plan for retirement. But Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, said "these people are not considering the potential of a job loss or medical issue that prevents them from working."

etrat

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #1 on: August 18, 2014, 12:19:07 PM »
As a current 18 - 29 year old, this doesn't surprise me too much. Many friends just don't seem to care about planning that far ahead. Still, a lot don't really have a job that allows them to save much given the amount of going out and spending they've decided to make a priority.

The 26% on the folks so close to "retirement age" is kind of troubling though. I wonder how much of that is due to folks having to drain their 401ks during the recession due to job loss.

Abe

  • Magnum Stache
  • ******
  • Posts: 2647
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #2 on: August 20, 2014, 07:20:46 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)

Middlesbrough

  • Bristles
  • ***
  • Posts: 268
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #3 on: August 20, 2014, 07:52:30 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)
Cereal for dinner is just awesome, except LIFE cereal is the correct choice. You seem misinformed. :)

Calvawt

  • Bristles
  • ***
  • Posts: 337
  • Location: Central CA
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #4 on: August 20, 2014, 09:55:34 PM »
I think "planning" to work for the rest of their lives should instead say "forced" because of no planning.

Retired To Win

  • Handlebar Stache
  • *****
  • Posts: 1493
  • Age: 76
  • Location: Virginia
  • making the most of my time and my money
    • Retired To Win
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #5 on: August 21, 2014, 05:36:05 AM »
... People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)
Cereal for dinner is just awesome, except LIFE cereal is the correct choice. You seem misinformed. :)

No, no.  Oatmeal with milk and fruit is the real frugally tasty and nutritious winner.  :O

Seriously, though, I can relate to that Bankrate survey but in a very unsympathetic way.  I too had no retirement savings (except for the equity in our house) until well into my 40's.  Then I saw the light.  By the time I was 53 I had enough to retire -- but did not know it because my expenses were too high!  Thank goodness I then saw the frugality beacon.  I cut my basic living expenses down to less than $18,000 a year and became instantly financially independent.

So, yes, I see how all those people don't have a retirement pot to piss in.  But it is a situation of their making and most of them could change it by adjusting their mental attitudes.

nvmama

  • Stubble
  • **
  • Posts: 105
  • Age: 46
  • Location: MA
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #6 on: August 21, 2014, 08:28:14 AM »
I am not surprised by this survey results in fact I would have thought it would have been a higher percentage. 

My husband is one of those people who plans on working forever.  He tells me he's not going to retire.  He does save some money for retirement up to his company match, but not much more. (I'm working on this).  For him though, I think he has seen how retirement hasn't really been good for  his father, who now sits and watches tv all day and has become a conspiracy theorist.  In all I think he wants to stay active and he probably feel that unless he has something specific, like work to do, he won't.

legacyoneup

  • Stubble
  • **
  • Posts: 104
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #7 on: August 21, 2014, 12:24:34 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may see you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)

lol... loved the way you put it. Sending some free Cheerios... um cheers your way!

Timmmy

  • Bristles
  • ***
  • Posts: 439
  • Age: 40
  • Location: Madison Heights, Michigan
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #8 on: August 21, 2014, 01:21:57 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)
Cereal for dinner is just awesome, except LIFE cereal is the correct choice. You seem misinformed. :)

Cinnamon Life is the best!!!

usmarine1975

  • Guest
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #9 on: August 21, 2014, 01:28:24 PM »
I have had people tell me that Social Security is their retirement plan.  And then ask me why it's not a retirement plan.  Interestingly enough it's the same people that buy a brand new tv and go on lavish vacations but want help with medical situations etc...

stlbrah

  • Bristles
  • ***
  • Posts: 430
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #10 on: August 21, 2014, 08:18:24 PM »
my sister gets 1.5x company matched which is amazing, but doesn't contribute and just took out a loan for a camper. Some people just dont get it

darkadams00

  • Bristles
  • ***
  • Posts: 419
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #11 on: August 21, 2014, 08:43:22 PM »
As much as I agree with the sentiment of the numbers, I don't really understand why retirement surveys don't pick a higher minimum age. For most families I know, 18-22 years old means minimal earning at a job while figuring out adult life beyond high school (no college desired or anticipated) or working part-time at best while in college to prevent or minimize student loans. Yeah, there are professional athletes, soldiers, and industrious young adults in this range, but they're the exceptions watered down by the masses. They're not adult enough to drink with their buddies tonight, but they should be adult enough to max out their 401k for retirement in a few decades!

So pick a softball set of age groups beyond traditional college/apprenticeship/internship age, say 25-34, 35-44, etc. and give that crowd a boatload of grief for being such slouches.


wtjbatman

  • Handlebar Stache
  • *****
  • Posts: 1301
  • Age: 40
  • Location: Missouri
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #12 on: August 22, 2014, 05:58:14 AM »
For him though, I think he has seen how retirement hasn't really been good for  his father, who now sits and watches tv all day and has become a conspiracy theorist.

You don't need to be retired for that. I have a deadbeat brother who still lives with our parents and believes the NSA is monitoring his internets.

eyePod

  • Pencil Stache
  • ****
  • Posts: 963
    • Flipping A Dollar
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #13 on: August 22, 2014, 08:07:23 AM »
I think "planning" to work for the rest of their lives should instead say "forced" because of no planning.

Bullshit. They made the choice even if they didn't understand the consequences. There are other ways (a la mustachianism). Reminds me of people who stay in religion when they hate it/don't believe it because they don't understand that you have a choice in the matter.

EarlyRetirementGuy

  • Stubble
  • **
  • Posts: 133
    • Early Retirement Guy
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #14 on: August 22, 2014, 08:11:05 AM »
I expect the % figures are largely the same in the UK as well.

I'm in the 18-29 age group and a majority of my peers I've spoken to have no retirement savings. Excuses range from relying upon state benefits, not having enough spare cash at the moment and just not caring.

Ironically, it's those who spend the most of their income now which will be hit hardest when they are forced to take reductions in retirement. Those able to live cheaply now will continue to be able to do so in retirement.

steadierfooting

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #15 on: August 22, 2014, 08:32:02 AM »
I think the figure is meaningless without historic trends.  If 36% had always not saved for retirement then that's the status quo, and I wouldn't expect policy changes to see wealth redistribution.  I find it sad when people say they would work the rest of their lives if they could.  I wonder if that's the case in other countries as well, or if american's are 'brainwashed' into that mentality.  I love my job, it's highpaying, 0 stress, and easy.  Yet it's still a tool to get me to FI, and once I'm there, ADIOS.  I guess most people don't get to that FI stage before they are really old so it's a completely foreign concept to waste time thinking about.

beltim

  • Magnum Stache
  • ******
  • Posts: 2957
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #16 on: August 22, 2014, 09:56:52 AM »
For many Americans, Social Security is their retirement.  36% aren't saving for retirement?  What a coincidence!  35% of retirees receive more than 90% of their income from Social Security.
http://forum.mrmoneymustache.com/welcome-to-the-forum/risk-of-not-taking-ss-asap/msg350458/#msg350458

Edit: This also address the historical trend question posed by steadierfooting.  The percentage not saving now is roughly the percentage of retirees who didn't save (much).

Abe

  • Magnum Stache
  • ******
  • Posts: 2647
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #17 on: August 25, 2014, 06:38:15 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)
Cereal for dinner is just awesome, except LIFE cereal is the correct choice. You seem misinformed. :)

Cinnamon Life is the best!!!

I do like Cinnamon Life! Pretty much anything with cinnamon. Is it weird to have 4 different types of cereal in my pantry? My wife thinks so. I think it is awesome.

Timmmy

  • Bristles
  • ***
  • Posts: 439
  • Age: 40
  • Location: Madison Heights, Michigan
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #18 on: August 25, 2014, 07:39:06 PM »
It is a big mess. We as a society became complacent and thought it would never rain, sold all our umbrellas and then a monsoon hit. Now everyone's surprised no one has umbrellas. Always assume it will rain at some point. People may se you as a sourpuss now, but you won't be the one eating cheerios for dinner in 20 years (by necessity, not choice. I eat them by choice.)
Cereal for dinner is just awesome, except LIFE cereal is the correct choice. You seem misinformed. :)

Cinnamon Life is the best!!!

I do like Cinnamon Life! Pretty much anything with cinnamon. Is it weird to have 4 different types of cereal in my pantry? My wife thinks so. I think it is awesome.

I currently have 5 different types.  I had 6 but I finished off the lucky charms this morning.

Zamboni

  • Magnum Stache
  • ******
  • Posts: 3884
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #19 on: August 25, 2014, 08:39:59 PM »
I also have 5 types.  I'd have more, but it won't really fit in the designated area for cereal boxes.  Think I'll go have a bowl right now!

GetItRight

  • Pencil Stache
  • ****
  • Posts: 627
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #20 on: August 25, 2014, 09:19:32 PM »
That figure doesn't surprise me. I fit in that age range and most friends near my age have nothing saved. They tend to fall into one of two groups. Low paying job or bouncing between jobs and little ambition to learn a skill and market themselves for a career type of job, or around median wage skilled job but drive expensive new cars they financed, out to the bars several nights a week, and generally blowing borrowed money on frivolous things. Over the last couple years I've drifted away from these people. They seemed resentful that I was not impressed with their fancy financed luxuries and didn't like my bbq suggestions over going out.

On any event, while I'm not exactly mustachian I have at least a little sense of frugality. Don't pay someone to do something I can do, don't finance luxuries or toys. I wasn't always that way but the terrible mistake of financing college forced me to be. Just trying to dig my way out but paying thousands a month on student loans means it hurts to put anything to retirement right now. I put 6% to get the 401k match though. I can't say no to free money. A lot of people at work don't even put that much in, and they are paid more as well as significantly older. I don't get it but I suppose not everyone thinks long term or maybe have some ridiculously high interest debt that it makes sense.

mbl

  • Bristles
  • ***
  • Posts: 331
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #21 on: August 26, 2014, 06:54:22 AM »
I do agree that for a segment of the population an element of irresponsibility is at the core of low/no savings.    That being said, it seems that there's an attitude here that all of those noted for having no retirement savings/investments are in that position because they chose not to do so.
How about the lifelong low earners in our society?    Those who've only earned enough to just get by.  Those that don't have access to a pension/401(k) due to being minimum wage earners for the majority of their working lives?   You know them.   They might be the aid that works in a nursing home,  or the cleaners that work after hours in your office, or the 60 year old working at McD's.
Layoffs, reduction in work force can also factor in for many.

Not everyone is educated or has the wherewithal to earn above and beyond what they need to exist.



Dicey

  • Senior Mustachian
  • ********
  • Posts: 22384
  • Age: 66
  • Location: NorCal
Re: Bankrate survey: 36% of Americans not saving for retirement
« Reply #22 on: August 26, 2014, 07:28:28 AM »
I do not like these kinds of articles. The up side of not keeping up with the Joneses is I don't have to worry about this stuff. In fact, I think these articles are written just to convince the sheep that they will never have enough and that they must keep throwing money at expensive investments provided by retail brokers if they are to have any hope of comfort in their old age. Blech.