1 in 3 Americans Have Less Than $5,000 in Retirement Savings

Northwestern Mutual's 2018 Planning & Progress Study found almost eight in 10 Americans are "extremely" or "somewhat" worried about affording a comfortable retirement, while 66 percent are convinced they will likely outlive their retirement savings, reports Think Advisor . The study estimates that one in three Americans have less than $5,000 in retirement savings and one in five have zero savings; one in three polled baby boomers had less than $25,000. In addition, 75 percent of Americans think it is "not at all likely" or only "somewhat likely" that Social Security will be available when they retire. Nevertheless, 46 percent of adults have made no preparations for the probability that they could outlast their savings. Moreover, these concerns may be spurring people to work longer, with the survey finding 38 percent of working Americans expect to retire at 70 or older while 33 percent anticipate retiring in the more traditional 65-to-69 age bracket. Of the 55 percent of Americans who believe they will have to work past age 65 out of necessity, 73 percent cited "not enough money to retire comfortably" as the main motivator. Sixty-one percent cited Social Security being insufficient to cover their needs and 52 percent cited rising costs such as healthcare. "Continuing to work later in life should be a personal choice, not a mandatory requirement for survival," says Northwestern Mutual's Rebekah Barsch. "Proactive financial planning can be the difference between a desired and a default retirement lifestyle."