A new study found that a vast majority of older Americans are not prepared for retirement. However, they still have high expectations for how their golden years will be spent. The Insured Retirement Institute found that 51% of the 1,000 people – ages 40 to 73 – surveyed had less than $50,0000 saved for retirement. In other news, home prices and consumer expectations pointed to more inflationary issues on the horizon for the U.S. economy. However, many Wall Street economists still see inflation falling off in the years ahead.
Fox Business/Breck Dumas
Retirement savings for older workers falling short
The vast majority of older American workers are not prepared for retirement and they know it, but many still have high expectations for how their golden years will be spent according to a new study.
The Insured Retirement Institute (IRI) conducted a survey earlier this year of nearly 1,000 part-time and full-time employees ages 40 to 73, and found that 51% of them had less than $50,0000 saved for retirement, and 56% of respondents admit that they do not believe they will be prepared financially to sustain themselves for the rest of their lives after they stop working. Despite that, one third believe they will retire before 65.
IRI also found that 58% of older workers believe they will need to bring in $55,000 or more annually in their retirement, and 38% expect incomes of $75,000 or more. But the vast majority are not on track to get there.
Read the full story, here.
Two more factors have popped up that add to the Fed’s inflation worries
Trends in home prices and consumer expectations that were part of data releases Tuesday pointed to more inflationary issues on the horizon for the U.S. economy.
The S&P/Case-Shiller index, which measures home prices across 20 major U.S. cities, rose 1.77% in June, bringing the year-over-year gain to a staggering 19.1%. That’s the largest jump in the series’ history going back to 1987.
For perspective, the biggest annual gain in prices prior to the subprime meltdown and 2008 financial crisis was the 14.4% increase in September 2005.
At the same time, The Conference Board reported that consumer inflation expectations ticked higher again, with respondents to the survey now seeing the metric running at 6.8% 12 months from now. That’s up a full percentage point from a year ago, or 17.2% on a relative basis.
You can read the full story, here.
Investopedia via Yahoo Finance
5 Key Retirement Planning Steps to Take
Retirement planning is a multistep process that evolves over time. To have a comfortable, secure—and fun—retirement, you need to build the financial cushion that will fund it all. Planning for retirement starts with thinking about your retirement goals and how long you have to meet them.
See the five steps experts say you should take, here.