Study: 1 in 5 aren't saving anything for retirement - Quincy News, Weather, Sports, and Radio

Study: 1 in 5 aren't saving anything for retirement


Are you saving enough for your golden years? A new study found more than half of all workers are not saving for retirement.

So what's to blame? The study says that when people get their paychecks, the majority of it is going towards the essentials. Very little, if any, is going into savings.

(See "What to do if your company cuts your 401(k)")

Hannibal mom Courtney Wilson said she simply can't afford to put any money towards retirement. Trying to raise 3 daughters on her own, Wilson says saving for retirement isn't even on her radar.

"I'm only 26, I don't even think about retirement right now," Wilson said. "I've still got 25, 24 more years left to save for it."

(Are you saving enough for retirement? Click here for a retirement savings calculator from The Dave Ramsey Show airs each weekday from 3-5 p.m. on WGEM News/Talk 105 FM)

That attitude seems to be reflected across the board. The study says nearly 1 in 5 workers aren't saving anything at all. And with Wilson just recently back into the workforce, her paychecks are being used to pay for the essentials.

"Right now it's going towards my vehicle, my children, their needs, electricity, main stuff I need for everyday living," Wilson said.

Tim O'Connor with O'Connor Wealth Management says the longer you wait to start saving, the harder it's going to be.

"If you start young it's going to take at least 10 percent of your pay to accumulate enough," O'Connor said. "If you start late, well into your 40s, that figure can become over 20 percent."

Even O'Connor agrees that it's difficult to focus on things later on down the road instead of the "right now" expenses.

(See "Why people don't save money, and how to change that")

"We've got a lot of blinking lights that are grabbing for our attention," O'Connor said. "So, yeah, their immediate family, certain desires are spent first."

And with tight budgets, O'Connor says it's not always possible, but retirement savings is something everyone needs to strive for.

(Get more retirement, savings and investment stories from The Clark Howard Show airs each weekday from 1-3 p.m. on WGEM News/Talk 105 FM)

"Really, really work on their budget. With a very fine eye and a pencil and eraser to see if there's a way that there are some expenses that could be eliminated."

If you have a retirement savings set up with your employer, O'Connor says that's one of the easiest ways to do it.

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