These facts will hopefully scare you into action so you can avoid the ghoulish fate of those who do little to nothing in retirement preparation…
1) 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.
2) 30% of workers in a 2012 study reported that they had less than $1,000 in savings and investments.
3) A 65-year-old couple retiring in 2012 is estimated to need $240,000 to cover medical expenses throughout retirement.
4) Just 14% of American workers are very confident they will have enough money to live comfortably in retirement.
5) Half of current retirees surveyed say they left the work force unexpectedly as a result of health problems, disability, or getting laid off. If you think you’ll just “work forever” instead of planning for retirement, you may want to think again.
6) For a low earner retiring at 62 — Social Security replaces 40% of pre-retirement earnings. This is unlikely to provide for a comfortable retirement.
7) Nearly 75% of retirees have not saved enough and said they would save more if they could do it all over again.
8) More than one-third of all households end up with no employee-sponsored retirement plan at all during their entire work lives and others, who move in and out of coverage, end up with inadequate 401(k) balances.
9) At age 65 and above, Social Security benefits provide more income than any other source for over 60% of households, regardless of marital status. With an average monthly benefit of $1,230 for retired workers, this indicates that a lot of retirees must be struggling.
10) One-third of households end up entirely dependent on Social Security; for low earners that portion is 75%.
11) 21% of workers covered by 401(k) plans choose not to participate.
12) A typical worker should accumulate about $363,000 by the time he or she retires. According to the Fed, a typical household approaching retirement had 401(k)/IRA balances of only $120,000 in 2010, far short of the projected amount for the individual.
13) 60% of workers report that their total household savings and investments, excluding the value of their home and any defined benefit pension, is less than $25,000.