5. Most Americans don’t know how much they need for retirement
Figuring out how much you need to save for retirement is tricky. There are some experts out there who like to give very specific numbers, but the truth is that everyone’s living situation is different, so it would make sense for their finances to look different too.
Another Northwestern Mutual study found that 54% of Americans don’t know how much money they’ll need for a comfortable retirement.
Add to that misconceptions regarding expenses during retirement, or the fact that many people don’t take advantage of saving accounts, and you can begin to see why so many seniors believe they will struggle during their golden years.
Only 55% of baby boomers have money saved for retirement according to another survey, though half of those without savings claimed to have had retirement savings at some point in the past. In cases in which employers offer workplace contribution plans, 1 out of 6 boomers don’t participate in them. Make sure that you do, if your workplace offers one!
When it comes to Medicare, 1 in 4 boomers falsely assume that the program will pay for long-term care costs. If you believe you will need long-term care, make sure you save up for that in addition to other retirement expenses.
