Most workers who aren’t saving for retirement through their employers aren’t saving at all, the study found
New data suggests the average American worker has under $1,000 saved for retirement.
A report from the National Institute on Retirement Security found that the median savings for all employed adults between the ages of 21 and 64 were approximately $955. The study includes workers with 401(k) and other retirement savings plans, as well as the approximately 56 million workers who do not have access to employer-sponsored retirement plans.
Workers with retirement savings plans have a median balance of approximately $40,000 saved, according to the report. That figure is nowhere near the $1.5 million that Americans say they need to feel comfortable fully retiring.
I’ve been diversifying into some long term stock options in some of my savings accounts. I live quite frugally so I am able to still save a bit while paying a bit extra to my mortgage. So far I’ve done pretty good in the markets but my trading accounts aren’t significant sums of money, when they do well I sometimes wish I invested more but when a stock is down bad I’m reminded why I keep those sums low.
People underestimate what even $50 a month can do over time. Sure it might not be down payment money but it could be enough to build a safety net so you can try a new job or move somewhere else with a bit more behind you.