Americans are all about spending and less about saving, especially when it comes to saving for retirement. New research shows that more than one-third of Americans have not set savings aside for retirement.
According to a report from the consumer financial services company, Bankrate.com, approximately 70 percent of 18 to 29-year-olds haven't started saving for retirement. 33 percent of 30 to 49-year-olds and 26 percent of 50 to 64-year-olds do not have retirement savings either.
The survey included 1,003 adults living in the U.S. The survey found that while a large amount of Americans are not looking to the future in the financial sense, the most common decade for Americans to start saving is in their 20s. Twice as many 30 to 49-year-olds say they began saving when they were in their 20s compared to their 30s.
"These numbers are very troubling because the burden for retirement savings is increasingly on us as individuals with each passing day," says Greg McBride, chief financial analyst for Bankrate.com. "Regardless of your age, there is no better time than the present to start saving for your retirement. The key to a successful retirement is to save early and aggressively."
College grads were more than twice as likely than those with high school diplomas to begin saving for retirement in their 20s. They also reported being comfortable with their savings compared to those without advance levels of education.
"The burden for retirement savings is bigger for each younger generation. Pensions are less prevalent, medical care costs are higher and life spans are longer," McBride says. "[Younger generations] don't have the luxury of counting on a pension in many cases, and for those at the younger end of the age bracket, the future of social security is very uncertain."
Still, most 18 to 29-year-olds surveyed reported having no savings, but were more than twice as likely than 65 and older individuals to say they are secure with their finances.
The national unemployment rate is currently at 6.2 percent. According to the Labor Department, unemployment for 20 to 24-year-olds was 11.3 percent in July, and 7.6 percent for 25 to 29-year-olds.
McBride says that having no money is only a "temporary excuse," and that those with full-time jobs should start saving to solve this problem. "I think a lot of people want to save, but they keep waiting for the right time," he says. "They'll say things like, 'When I get my next raise I'll start saving.'"
Spending instead of saving is only part of the problem. Many people don't have access to retirement savings plans through their jobs. If 401(k)'s are not offered at your job, personal retirement accounts or IRA are other options.
According to Bankrate's IRA savings calculator, if you put away $100 per month when you are 20-years-old, by the time you about to retire at age 65, you will have $367,000.
