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Yet Another Study States That Americans Are Falling Down on Retirement Savings
Americans aren't exactly known as strong savers, which explains why so many live paycheck to paycheck. But in a survey by the CFP Board released earlier this year, 48% of U.S. adults aren't saving any money for retirement. And that's disturbing, because while Social Security will provide some income for bill-paying purposes, those benefits aren't designed to sustain seniors by themselves.
Social Security will generally replace about 40% of the average earner's pre-retirement income. Most seniors, however, need around twice that amount to live comfortably, and when we think about the expenses retirees face, that makes sense. Most common living expenses, from housing to transportation to food, don't go away in retirement. Some expenses, like healthcare, can even increase. As such, seniors need more than Social Security to get by, and that's where independent savings come in.
If you've been falling down on the retirement savings front, it's imperative that you make an effort to improve. Otherwise, you risk struggling financially during your golden years when you deserve to be enjoying that time instead...
The Motley Fool
by Maurie Blackman
August 26, 2019