This majority of Americans currently have less than $25,000 in savings. That’s barely enough to finance one year of retirement in most parts of the country. And 20 percent of workers say they have less than $1,000 in savings, according to a recently released Employee Benefit Research Institute and Mathew Greenwald & Associates survey.
Young people with few years in the workforce pull down the overall savings amount. But the typical nest egg of Americans age 55 and older is equally as scary. About 30 percent of these baby boomers rapidly approaching retirement age have less than $10,000 worth of savings and investments, not including their primary residence or pension. About 41 percent of baby boomers have managed to save six figures. But only about a quarter of baby boomers (26 percent) have $250,000 or more saved for retirement.
The stock market decline is getting the most attention for these low account balances. Americans simply not saving and failing to be knowledgeable about their investment choices is another reason. A 60 Minutes episode that aired on Sunday says hidden 401(k) fees are also to blame. Check it out below.