An alarming number of Americans don’t know how much they have saved for retirement, a new report from the TIAA Institute reveals. This is a dangerous oversight considering that the amount saved directly impacts savings, investments, retirement age, and quality of life in retirement. The report found that nearly 3 in 10 Black Americans and 4 in 10 Latino Americans, who have not yet retired, are unaware of their retirement account savings. The lack of knowledge about account balances increases the risk of financial instability in retirement, particularly for individuals with low savings.
The report also highlights that many Americans possess very low retirement savings, with half of those who can estimate their savings having less than $250,000 saved. This finding is concerning as one in eight Americans are uncertain about how they will fund their retirement. Moreover, fewer than 1 in 4 individuals have a financial strategy for retirement in the form of a written plan. Experts argue that this lack of attention to retirement savings is a significant reason for the nation’s looming retirement crisis.
To mitigate this crisis, it is crucial for individuals to periodically check their retirement accounts and use all available data to gauge the stability of their financial situation and make necessary adjustments. Moreover, experts suggest that knowing the amount saved currently is critical for effectively planning for retirement and making informed investment decisions. The ultimate goal is for individuals to be well-informed about their financial situation and take action as needed to ensure financial security in retirement.
