A little savings today will set you apart from others in retirement


Yesterday, the Federal Reserve's 2014 Survey of Household Economics and Decision Making found many Americans are not financially prepared for retirement.

  • 38% percent have either no intention to retire or plan to keep working for as long as possible.
  • 31% of non-retirees have no retirement savings or pension, including nearly a quarter of those older than 45
  • 55% of those making less than $40,000 per year plan to keep working as long as possible or never plan to retire
  • 53% could cover a hypothetical emergency expense costing $400 without selling something or borrowing money.
  • 31% went without some form of medical care in the past year because they could not afford it

In the good news department, 65% of respondents viewed their families to be either "doing okay" or "living comfortably" financially.

If you are a 35 year old that can save $150 per month for retirement into a solid growth mutual fund, you could accumulate over $222,000 by age 65 with an average return of 8%. If you return averages 10%, then you would have over $327,000. A 12% average return could accumulate over $488,000.