A recent study from Country Financial has me worried.
It’s not only because the study reveals that 1 in 4 Americans across all age groups have a retirement nest egg of zero. It’s no surprise that people age 18 to 29 save the least because young people rarely think about saving for their golden years. That’s human nature and although it’s wrongheaded thinking, it’s understandable. In fact, when people over 40 were questioned, nearly 40 percent say they regret not saving sooner. Again, understandable. We all regret youthful decisions. Even those in college regret things they did or didn’t do as a teen.
What really has me concerned is the report’s question about what people already have. For example, 55 percent of people “are not or do not know if they’re participating in a 401(k) retirement program.” Also, 45 percent know they have a 401(k) but 30 percent of these workers do not know where their 401(k) contributions are invested.
I can understand when people say they can’t afford to put money away for retirement because they can’t make their current financial obligations. I may disagree (you can always save a little from each paycheck, or budget your money more wisely) but I understand and appreciate how they feel. What I don’t get is why people don’t even know if they have a employer-offered retirement fund, a 401 (k) and, if they do, where the money goes. It’s money that you’re spending and may include free money from your employer.
All it takes is a look at your paycheck or a call to HR or payroll.
Task time: 1 minute.
Do you have a minute to help secure you financial future? For some, the answer sadly is ‘no.’ Let’s fix this now, starting with you.