Despite a low unemployment rate and stronger economy, 20 percent of Americans don’t save any of their income at all and even those who do save aren’t putting away enough for retirement. According to a new survey from Bankrate.com, one-fifth of Americans are adding nothing to their savings. Among respondents, 2 in 5 cite life’s high expenses, while another 1 in 6 blame their crummy job.
“With a steady, significant share of the working population saving nothing or relatively little, it’s virtually guaranteed that they’ll be unable to afford a modest emergency expense or finance retirement,” says Bankrate senior economic analyst Mark Hamrick. “That amounts to a financial fail.”
Bankrate also reports that the average American has less than $5,000 in a financial account, a quarter to a fifth of what you should have, and those aged 55 to 64 who have retirement savings only carry $120,000 – which won’t last long in the absence of paychecks.