Why Aren't Older Workers Saving More for Retirement?
Most seniors can't live well on Social Security alone. The average recipient today gets a little over $18,000 a year in benefits, which may be enough to cover some basic expenses, but isn't enough to pay for extras -- things like modest leisure and entertainment that are essential to a happy retirement.
It's for this reason that workers are encouraged to save diligently for their golden years -- especially since Social Security benefit cuts can't be ruled out. But amazingly, 30% of people in their 50s saved $0 for retirement in the last year, according to the SimplyWise September 2020 Retirement Confidence Index. And given that some 50-somethings may be just a handful of years away from leaving the workforce for good, that's pretty alarming.
A lot of people have had no choice but to put their retirement savings on hold since the coronavirus outbreak hit. But SimplyWise found that almost one-third of workers in their 50s saved nothing for their senior years over the past 12 months. Since the pandemic really only started having an impact in March, that means older Americans were neglecting their savings well before it began.
Source Fool.com
