If you thought that the U.S. was slacking a bit in gearing up for retirement, we are guessing that you didn’t realize that as a nation U.S. citizens are roughly $14 trillion—yes, we said trillion with a “T”—away from where we need to be in order for our retirees to live out their golden years at the current standard of living.
A recent article in CBS Money Watch by Steve Vernon reported that, according to results from a National Institute on Retirement Security (NIRS) study, 45% of working class Americans and a third of working-age Baby Boomers have no retirement savings whatsoever. Not only that, but the estimated gap between what Americans have saved and what actually needs to be saved is $14 trillion.
We can see this deficit spilling into many other aspects of life, affecting other generations, businesses, and industries. Younger generations may need to step up and help to financially support their parents during retirement, while at the same time being denied higher-up positions at work because the seniors are staying employed longer.
The bottom line is that Americans are bearing the brunt of needing to save for retirement solely on their own due to dwindling employer pensions and a broke Social Security, and it’s not working out so well. Our advice to American consumers is to save as much as you can, as young as you can, to avoid the plight that many would-be retirees are facing now.