Posted on 03/18/2014 6:01:32 AM PDT by SoFloFreeper
America may have recovered handily from the Great Recession, and the bull market may now be five years old, but in no way should America think that it is remotely immune or even insulated from the next economic shock. It remains a fact that Americans just have too small a nest egg in savings — many with little or no savings and investments whatsoever.
A report from the Employee Benefit Research Institute (EBRI), which is collected on employees who participate or have the option to participate in retirement plans, says they just are not doing enough. Many metrics of the population as a whole have improved, but a whopping 36% of workers said they have less than $1,000 in savings. That figure was 28% in 2013.
To show how there is a huge split, the title of the EBRI’s 2014 Retirement Confidence Survey is even “Confidence Rebounds — for Those With Retirement Plans.”
It turns out that if a worker or his or her spouse have no retirement plan — an IRA, 401(k) or the like — then they are at an exponentially higher risk of falling into the no-savings category. That would be 73%, likely versus only 11% if they did have a retirement program.
(Excerpt) Read more at 247wallst.com ...
Duhhh....there’s no incentive to save with next-to-zero interest earned on savings.
Obama’s America: people are poor.
Especially when you have student loans, car debt and credit card debt
More propaganda for the Theresa Ghilarducci “safe, secure, Federal pension plan” wet dream.
Any more than that then der 0berFuhrer Hussein 0bama and der ReichFuhrer Harry Reid, will seize it for wealth redistribution!
Bet most of them have cable and big screen TVs.
Paying the ol’ healthcare deductible could be challenging. ...
I wonder what the average “debt” would be.
lol Sure.....
....If you live in DC/Northern VA, Manhattan, or Silicon Valley.
Regarding the low savings rate, which I'm a little surprised it's as high as they claim, conditions couldn't be worse for people looking to save money. We have stagnant to falling wages, less jobs, higher cost of living, and interest rates for savings accounts are a joke. Even many of those that DO have decent paying jobs are living paycheck-to-paycheck, and or mired in debt as far as the eye can see. The only advantage of keeping funds in a bank over a mattress is physical security, and even THAT concept can be a bit dubious in some situations.(see Corzine)
That $2500/year windfall everyone got from O’care will fix that. (scriggly S)
I just love these people who claim that we’re not saving enough.How the Hell do they expect you to save when this government continues to increase the cost of energy,food and healthcare?
Then on the State and local levals they increase your sales taxes utility taxes,property taxes and such.It can’t be done.
One thing us sure I refuse to work a sixteen hour day so the government can steal more of my hard earned income.
I have about $7K in the bank but with prices and uncertainty the way they are it feels like next to nothing.
I use mason jars.
Savings and retirement savings are two totally different things! We have both as long as we have work. Thanks, Dave Ramsey!
I am old enough to remember a time when few had debts. You either paid up front, or layaway, of did without.
The only credit available was on homes, cars, and some department stores had revolving credit. The main thing was that those making the loans were more careful on who they loaned money to. (I remember the first loan I got, I had to use my car and furniture as collateral).
I grew up in a poor family, but we did not feel poor as everyone around us were in the same boat. No television, no car, no telephone, and we had three meals a day; oatmeal, cornmeal and miss a meal (a joke but with some truth).
Credit cards began to appear in the early 1950s, but only for the rich. The in the mid-1960s things began to change and credit cards were being issued to more people. From being used only for emergencies to now buying a fast food meal. I was shocked the first time I saw someone buying groceries with a credit card.
Credit cards are great, if you pay the balance each month, but are a quick way to enslave yourself if you don’t. Everything you buy on credit and not pay off becomes more expensive.
I fell into this trap when I was young and foolish. I finally woke up one day to discover myself deep in debt. I also discovered with revolving credit (from department stores) they still claimed everything you have bought on credit as collateral if you had never paid it off.) I found that I was still paying on things that I have used up and got rid of.
I found myself in debt and no savings! Which gets us to the point of this post.
I stopped buying (other than necessities) and began paying off my debt. It took two years but I did it. I cancelled all but one gas card and a visa. Since that day 30 years ago I have never paid interest on a credit card again.
I also began saving the money I once used to pay the interest, except for our mortgage. I then began paying more on the principle on the mortgage and was able to pay off a 30 year loan in 20 years. I never calculated how much I saved in interest, but it was a lot.
That extra went into my 401k.
I am now retired, own my home, money in the bank and a healthy IRA that I have not had to touch...yet.
None of this would not be possible if I had not woke up 30 years ago and got my financial house in order. Something I would recommend to anyone in debt today.
when the next shoe falls on this economy it will be great depression 2.0
I have been preparing for this for 5 years now.
Okay, that immediately set off alarm bells for me.
...employees who participate or have the option to participate in retirement plans, says they just are not doing enough. Many metrics of the population as a whole have improved, but a whopping 36% of workers said they have less than $1,000 in savings. That figure was 28% in 2013.
Do you see the disconnect here? First, we are supposed to have recovered "handily" from the Obama disaster, but we're not doing enough to save!
Has the author gone to a grocery store since Obama took office? Has the author put gas in his car since Obama took office? Could there be a correlation and an ensuing causation between the Obama "recovery" and people using every means available to them to keep afloat? And now Obamacare expect people to fork over $1,500 a month for a bronze plan?
What the heck is the author talking about! Did he do any research beyond the DNC talking points that he was given in advance of this article? Did Media Matters pen this?
Good for you! My aim as well, except I just got a new mortgage. Everything goes to paying off debt, and I need very little else.
Wait a minute.....
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