‘A serious retirement crisis’: New data shows 1 in 5 Americans over the age of 50 have nothing saved for retirement — here’s why and how to catch up if you’re way behind
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It’s no surprise that so many Americans are extending their time in the workforce and delaying retirement — especially when many people have no savings shored up for their golden years at all.
In fact, roughly 20% of Americans aged 50 and over do not have anything saved for retirement, according to a new survey from AARP. The survey also found that 61% worry they won’t be able to financially sustain themselves during their retirement years.
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“America is facing a serious retirement crisis," said Nancy LeaMond, executive vice president and chief advocacy & engagement officer for AARP, in a press release. "Congress must act more swiftly to provide the financial support older Americans need and deserve.”
While the future of Social Security remains uncertain and the government is mulling over retirement legislation, here are are a few ways you can boost your retirement savings now.
How to get ahead if you’re behind
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.
Congress is currently considering the bipartisan Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans. There’s also the Automatic IRA Act of 2024, which seeks to improve access to employer-sponsored IRAs with automatic contributions.
While you’re trying to catch up on shoring up funds for your golden years, make sure you’re picking the right retirement vehicle.
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 a gold IRA with the help of 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.
Another way you can grow your retirement savings is through Compound Real Estate Bonds, a real estate company that offers an opportunity to earn 8.5% APY through their SEC-qualified Real Estate Savings Bonds.
Compound has a strong focus on income producing real estate and real estate private credit, that can help you diversify your portfolio while helping to hedge it against further inflation.
By choosing to invest with Compound, you can boost your retirement nest egg or savings over time and also enjoy the freedom of no fees or lock-in periods, so you have the flexibility to withdraw your funds whenever you need to.
Read more: Generating 'passive income' through real estate is the biggest myth in investing — but here's one surefire way to do it without breaking the bank
Don’t delay dealing with debt
Roughly 30% of older adults who carry over a credit card balance from month-to-month report carrying a balance of $10K or more, while 12% described their balance as $20K or more, according to AARP.
Before you can start funds aside consistently, make sure you’ve either settled or have a plan for settling all your debts — including your credit cards and student loans.
Reducing debt amidst high interest rates can be daunting, but Credible can make it easy to streamline your debt repayment at an affordable rate.
Credible’s online marketplace of vetted lenders provides personalized debt consolidation loan offers based on your needs, allowing you to pay off your debt more efficiently at a fixed rate without juggling multiple bills.
Cut down on monthly expenses while you’re at it
According to the AARP survey, 37% of respondents are worried about covering basic expenses, such as food and housing.
So what can you do to bring yourself peace of mind in the present while you plan for the future?
You can make sure you aren’t overpaying for two major monthly expenses that may have increased with inflation: your auto insurance and home insurance.
The national average annual cost of homeowners insurance is $2,511 per year, according to MarketWatch.
With OfficialHomeInsurance, you can easily compare home insurance rates in your area. Their side-by-side comparison platform can save you an average of $482.
Additionally, the national average yearly cost of full coverage auto insurance stands at $2,150, according to Forbes Advisor — that's $179 per month.
But, depending on which state you live in, your driving history and the make and model of your car, there are some insurers that can offer you far less than what you're currently paying.
With BestMoney, you can find affordable car insurance rates near you.
BestMoney will compare offerings and even check for discounts from top insurers allowing you to choose the most affordable option so you can streamline your budget and allocate more money for retirement.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
