The three pillars of retirement savings are pension, savings and Social Security benefits. The third might be your lifeline, if you don’t have enough in the first two.
Bloomberg reports that many Americans 55 and older have nothing in a work or individual retirement account, according to a GAO estimate.
The Employee Benefit Research Institute estimates that 41 percent of U.S. households headed by someone age 35 to 64 are likely to run out of money in retirement.
AARP Houston’s Juanita Jimenez-Soto said people are opting to pay off debt.
"For them it's a higher priority than actual retirement funding. We're talking about credit cards and maybe even student loans, whether it's theirs or a loved one’s or a mortgage. And, to them, it's taking priority over retirement," said Jimenez-Soto.
She said nearly half of the American workforce doesn't have a work retirement savings option like a 401K.
Jimenez-Soto said as people approach retirement age, there's no telling what will be your needs, so it's crucial to have a nest egg and always plan for tomorrow and the unexpected.
"When you don't have that job, you need money to pay the bills, you need money to buy food, medication, what have you. So, it really should be a priority," said Jimenez-Soto.
She said you need to set retirement goals because they'll usually meet them. Saving is hard, but doable. Every bit helps. And, it's never too late to start. Of course, cut back on your spending.
Previously reported, on average those age 65 to 74 had about $148,000 saved, that's about $649 a month.