A recent study reveals that only half of US households have sufficient savings for retirement, with a mere 31% having at least $100,000 set aside.
President Franklin Roosevelt established Social Security in the 1930s to help Americans avoid financial hardship during their golden years. However, Social Security was designed to provide a supplementary income, keeping recipients slightly above the poverty line, rather than being a primary source of support.
Experts advise that the best approach to saving for retirement is through an employer’s retirement plan. For those who max out their contributions, investment accounts offer an alternative. According to the study, about 40% of households possess $100,000 in assets, which can include homes, checking accounts, and retirement accounts.
The most effective strategy during working years is to spend within one’s means, live on a budget, and avoid spending more than one’s income.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]