There are many reasons people do (or don’t do) the things they should. According to GoBankingRates.com, almost 33% of American workers have saved nothing for retirement. That is an astounding statistic and spells trouble for the entire economy down the road.
Knowing the reasons for people not saving is a start, this way you may be able to identify a few solutions.
Here are some of the reasons listed for workers not saving for retirement according to GoBankingRates:
- THEY DON’T THINK SAVING FOR RETIREMENT IS A PRIORITY
About 40 percent of Americans said saving for retirement simply isn’t a priority for them, found the GOBankingRates survey.
- THEY ALREADY SPENT THEIR RETIREMENT SAVINGS ON AN EMERGENCY
Many Americans don’t have a single penny set aside in a retirement account because they used the funds to take care of emergency expenses or other priorities.
- THEY DON’T HAVE ACCESS TO A WORKPLACE RETIREMENT PLAN
Approximately 19 percent of survey respondents pointed out their employer doesn’t offer them a retirement plan. So they haven’t saved anything.
- THEY DON’T THINK THEY NEED RETIREMENT SAVINGS
Whether it’s because they expect to earn enough through passive income when they leave the workforce or they’re expecting a trust fund payout, about one in 10 Americans don’t feel the need to set aside a portion of their paycheck for the future, found the survey.
- THEY PLAN TO RELY ON SOCIAL SECURITY
Adults 65 and older spend an average of nearly $45,000 a year, according to the Bureau of Labor Statistics.
- THEY’RE STILL RECOVERING FROM THE 2008 CRISIS
It might be nearly 10 years later, but many people are still recovering from the 2008 financial crisis — and survey participants said this is the reason they haven’t saved for retirement.
- THEY DON’T MAKE ENOUGH MONEY TO SAVE FOR RETIREMENT
Not earning enough money is another reason some Americans are ignoring their retirement fund, found the GOBankingRates survey.