Hint: It's kind of scary.
You've probably heard that most Americans aren't saving nearly as much as they should for retirement. But it's not just carefree 20-somethings putting retirement savings on the back burner. According to a recent survey by GoBankingRates, about 30% of those 55 and over admit to having no retirement savings whatsoever.
Meanwhile, 26% report having balances of less than $50,000, which is far behind where the average person in that age group should be. And while the study confirms that Americans on the whole are failing to save adequately, it's older Americans without Without independent savings, many older Americans will be forced to rely solely on Social Security income during retirement. The problem there is that Social Security is only designed to replace 40% of the average American's pre-retirement income. Most of us will need anywhere from 70% to 80% of our pre-retirement income once we retire, and some of us might need even more -- especially those with medical conditions requiring costly care. Failing to save for retirement now means running the risk of not having enough money to live on once you're no longer working. And that's a very scary prospect.
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