What is the Average Retirement Savings by Age 50 For Americans?
So what is the average retirement savings by age 50 for most Americans? Truth be told, by the time most people reach the age 50 they start to think about death. And with that awakening also comes the fact that retirement is literally just around the corner. Also, the grim reality they must face (self included) is fact of not having saved enough to retire comfortably.
Why American’s Aren’t Saving For Retirement?
There could have been a variety of reasons why people don’t save. I know for me, it has been mostly because I was chasing entrepreneurial dreams and using my monthly income from my job to finance business tools. Apparently, I am addicted to expensive business tools that I never even use. (Reality Check: I still am, but I use them now) But for most people they simply don’t make enough money to save for retirement. It is expensive to live today and most people’s salary’s have not kept up with the cost of living. And as result we’ve reached a place where more than 50% of Americans over 50 do not have enough money saved to retire.
According to the EPI the average household savings in the age group of 50-55 is only $124,831. May experts say that by the time you’re 50 years old you should have at least 7 times your household income saved and most Americans miss this mark by a lot. The truth is that most people in America will work their entire life and end up with little or nothing. What makes matters worse is that the data is skewed by people who are considered “super savers.” Therefore, when you peel back the onion these results are worse than it seems. And these numbers get drastically worse with people of color. Only 41% of African-American families even have a retirement savings account. This is most likely the reason why most baby boomers are working longer.
Playing the Retirement Catch Up Game
In order to overcome the reality that you don’t have enough money to retire you can play the old catch up game by maxing out your savings plans. In 2019 you can save up to $19,000 max. If you’re over 50 you can add another $6,000 to that.
Another thing you can do is the painful exercise of downsizing. If you plan on cutting back when you’re in retirement, you might as well start now. Pay off all of your debt and keep it low. Then use that money to pay for retirement.
You can also pick up a part-time job. A lot of people Uber during retirement to make up for lost time income and pack more money into their retirement.
Personally, I do quite a few things to make up for lost time. One of those things is I blog. Blogging has been a real delight for me. I am writer and I love being able to express myself through writing. I make money from my blogs from the courses that I sell and from the ads. The other thing I do to stay young and help others is I sell Youngevity products. I’ve been the company for a while and have built a team of over 3,292 people. I would love to work with you.
What are you doing to save money for retirement? I would love to hear your plans. Leave a comment in the comments section below and let me know how things are going for you.