Your Retirement Savings Are ‘Average’
The 2017 GOBankingRates Retirement Savings survey found that 55 percent of Americans have less than $10,000 saved for retirement. And about one-third — 34 percent — have nothing saved.
Too many people think they will start planning for retirement “next year,” said Atlanta-based financial advisor Russ Thornton, founder of Wealthcare for Women. Eventually, that notion becomes an annual theme. “They’re not willing to save for the future at the cost of delayed gratification,” he said.
To make matters worse, many people who are behind on retirement savings eventually try to make up for lost time by taking additional risks. That can do more harm than good, jeopardizing any savings they have accumulated, Thornton said.
The best way to avoid this fate is to start planning for retirement today. Even if you can only save a few dollars per pay period, don’t discount the power of compound interest over time.
“The way to get the most out of compound interest is to start saving as soon as possible,” Thornton said.