Posted October 11, 2013
When it comes to retirement, how much money will you need to enjoy your golden years?
Many Americans have the “out-of-sight, out-of-mind” attitude toward retirement, believing they have plenty of time to save for it.
According to the Employee Benefit Research Institute, more than half of working Americans couples have less than $25,000 in total savings and investments, not including their home or defined benefit retirement plans. Many Americans believe they should save more, and they are concerned about outliving their savings.
The United States Department of Labor offers these additional statistics:
- Most Americans spend at least 20 years in retirement
- Fewer than half of Americans have calculated how much they need to save for retirement
- In 2010, 30 percent of workers with access to a defined contribution plan, such as a 401(k) plan, did not participate
How can Americans set aside more money for retirement? CNN Money offers several tips, including the following:
- Start saving as early as possible
- Set savings goals based on projected plans
- Contribute to a 401(k) or an IRA to help you set aside money
- Consider working part time during retirement to stretch your savings
- Estimate the savings of moving to a lower-cost community or state using CNN’s cost of living calculator
Here are some more tips on saving for retirement: