Financial Freedom Eludes Many, but Social Security Helps
However, one "freedom" that continues to elude many Americans is the ability to retire comfortably, and on your own terms.
According to a Bankrate survey released in March, most Americans fail to save an adequate amount of their income. While most financial advisors recommend that people save 15% or more of what they earn, just 16% of respondents to Bankrate's survey were heeding this advice. By comparison, 19% weren't saving a red cent, 21% were putting away 1% to 5% of their earnings, and another 25% were saving 6% to 10% of their income. In another context, essentially two-thirds of Americans are saving nothing or very little, thusly putting their retirement in jeopardy.
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Americans are leaning heavily on
One thing that has happened as a result of poor saving rates in recent decades is a growing reliance on
Still, it's a Gallup survey from
Considering that non-retirees tend to overestimate their ability to prepare for the future, the percentage of retired and non-retired workers who'll have complete freedom from
Meanwhile, an analysis conducted in 2016 by the Center on Budget and Policy Priorities found that the mere existence of
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Big trouble awaits
Though
According to the newest
Between 2018 and 2034, the roughly
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It's time to break the cycle
In short, no one is denying the role
How does the cycle get broken? It means Americans will need to formulate a budget and stick to it in order to save more of their income. A 2013 Gallup poll found that just a third of American households stick to a detailed monthly budget, which makes understanding your cash flow, and therefore saving a reasonable amount of money, almost impossible.
It also means putting the money you do save to work over the long run. Sure, the stock market may have its hiccups every now and then, but there's been no more consistent creator of wealth over the long term.
No one ever said the path to financial freedom was easy. If you want your shot at the American dream, which includes financial freedom, you'll need to be proactive about saving more of your income and putting those savings to work.
The
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "
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