Jun 3, 2024
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It’s no surprise that so many Americans are extending their time in the workforce and delaying retirement — especially when so many have no savings shored up for their golden years at all.
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In fact, only 1 in 10 low-income workers between the ages of 51 and 64 had a retirement account balance in 2019, compared to 1 in 5 in 2007, according to a 2023 report from the Government Accountability Office (GAO).
“After a lifetime of work, all Americans should be able to retire with dignity,” said Rhode Island Senator Sheldon Whitehouse in a press release at the time.
“But today, millions of Americans are retiring with no savings.”
An April 2024 survey by AARP found that an alarming 20% of people aged 50 and over have no retirement savings at all.
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Things have gotten so stressful that an April survey by life insurance giant Allianz Life showed that 63% of Americans are more scared of running out of money than they are of dying, up from 57% in 2022.
No matter what salary you bring in every year, there are ways to catch up if you’ve fallen behind on securing your financial wellbeing in retirement.
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Getting started on your nest egg
Just a small fraction of low-income Americans — who earn a median yearly salary of $19,000 — reported having some retirement savings to fall back on in 2019.
In the survey, Allianz Life found that 35% of respondents said putting a protion of their retirement savings towards a product with lifetime income payments was a top way to ease their fears of running out of money.
Before you can put funds aside, make sure you’ve either settled or have a plan for settling all your debts— including your credit cards and student loans.
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Credible can make this process easier with debt consolidation loans. When you consolidate your debt, you can get a better rate and pay it off faster. Credible’s online marketplace of vetted lenders helps you find the best loan options in your area so you can get the best deal and tackle your debt.
To add some extra padding to your retirement income, it’s best to start saving money ASAP.
By putting your savings in a high yield savings account they have a better chance at growing seeing as they outrank the national average APY of 0.46%. Consider one of our picks for the Best High-Yield Savings Accounts to build up your savings.
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How to get ahead if you’re behind
Only about 23% of low-income workers have access to a workplace retirement account in the first place, and some may opt out of making contributions if they’ve got limited income or are planning to rely on Social Security benefits.
As it stands, workers relying on Social Security to cover their expenses in retirement need to prepare for the program’s main fund to run low within the next decade.
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While you’re trying to catch up on shoring up funds for your golden years, make sure you’re picking the right retirement vehicle.
For example, if your employer offers a 401(k) plan, you can divert some of your pre-tax pay into the account and grow your savings tax-free. Your employer might even match contributions as well.
If not, consider looking into a Gold IRA with American Hartford Gold. A gold IRA is a type of individual retirement account that allows you to invest in gold and other precious metals in physical forms. And when you open with American Hartford Gold — an industry leader in precious metals — you can diversify your portfolio and stabilize your finances so you have some extra funds to rely on in your golden years.
With First National Realty Partners, everyday investors have access to institutional-quality, grocery-anchored commercial real estate investments without the effort of scouting out buildings on your own.
Through FNRP you can own a share of properties leased by national brands and their team of experts manage every component of the investment life cycle. On top of not having to worry about property management, you can rest easy knowing that these investments are necessity-based and will weather the storm of economic volatility.
All you have to do to get started is fill in some information about yourself, your income and investment goals and you can start earning extra cash for your retirement fund.
If you’ve started building your nest egg but think you might be behind on your goals or you aren’t sure of the best way to handle investing for retirement, you may want to consider speaking with a financial planner to make sure you’re on the right track. With Wiser Advisor, all you have to do is answer some questions about yourself and your finances and you can get matched with vetted financial advisors and book a free, no-obligation consultation.
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