According to a survey by Bankrate, one in five American adults have nothing saved for retirement or emergencies. There is also 20 percent that saves only 5 percent or less of their annual income for their future.
Less than a third of all Americans have saved at least 11 percent or more.
This survey was done before the pandemic. Imagine how it is now when people are prioritizing paying their bills rather than saving because, well, they don’t have anything to save.
Recently, Ric Edelman, founder of Edelman Financial Engines, has proposed an interesting solution to the problem.
The biggest factor that contributes to this problem is that many Americans are only starting to save for retirement past their 30s. Also, the Social Security retirement trust fund is at risk of depleting as soon as 2029.
Edelman thinks the fault is in the design. He said our retirement system is designed for people who are working.
You can’t join the 401(k) until you have a job, and then you’ve got to work for a boss who offers a 401(k).
Edelman said and I quote, “Most workers don’t join that 401(k) until they’re in their 30s. So, we grow and compound money for 20 or 30 years. We squander 30 years of compounding.”
Edelman’s proposal is a Retirement Income Security for Everyone.
He said that we should set up savings bonds for U.S. citizens at birth based on the income levels that would compound throughout their lives.
He said that by doing this, it will more than double the amount of retirement income Americans will get and eliminate income inequality in America.
Of course, all of this would take the Congress’ taking option and that’s the harder part
But it is important because if Congress takes no action on Social Security, benefits are going to be cut by 25%.
Wall Street Journal also said that some 10,000 baby boomers turn 65, and they’re reaching retirement in worse financial shape than the previous generation for the first time since Harry Truman was president.
Bankrate’s survey plus Edelman’s research just prove that the U.S. faces a major retirement crisis.
All these suggestions are great but for us who are here and now, we need to do something for ourselves. We need to take care of ourselves and plan our retirement.
We need to invest. Consult a financial advisor and make sure that we are diversified.
That diversification should include a hedge to protect all your investments against all economic crises. There is no better asset to do that than gold. Even the central banks of countries are hoarding it. Our own government is hoarding it.
If it’s good enough to protect the world economy, it’s worth looking at.
Start with our free gold and silver investment guide. Download it at www.noblegoldinvestments.com.
