Sometimes preparing for unpredictable events like hurricanes, wildfires, and blizzards is easier to do than preparing for the most predictable event of all, getting older. Right now, there are some people who would have a better chance at fighting off a zombie apocalypse than retiring in comfort. According to a new study by Fidelity Investments, 52% of American households will fall short of having enough money in retirement to cover the everyday essentials. Fox News’s Breck Dumas reports:
Americans’ retirement preparedness has dropped and a majority of U.S. adults are now projected to not be able to pay for basic essentials like housing and groceries in their golden years, according to the latest study from Fidelity Investments.
The investment giant’s 2023 Retirement Savings Assessment released Tuesday shows the retirement score for the average American household has dropped into the “fair” range, with more than half of those surveyed, 52%, falling short of having enough savings to cover everyday essentials when they leave the workforce.
Fidelity found that more than a third of Americans, or 34%, will need to make “significant adjustments” in order to afford retirement, while 18% presently require moderate changes to save enough for the basics.
Another 16% are projected to be able to cover essential expenses, but not discretionary spending on items such as travel or entertainment.
Some 32% of Americans today say they are on track to retire comfortably, down from 37% three years ago.
The score of 78 on Fidelity’s retirement scale this year is a five-point drop from the study’s record high of 83 reached in 2020. Looking back further, the score sat at 74 in 2013, rose to 76 in 2016 and hit 80 in 2018.
Action Line: Prepare for the predictable. You will need to retire. Save til it hurts, and work for as long as you can. When you’re ready, I’m here. Until then, become a member of my weekly email club by clicking here, and we’ll weather this storm together.
E.J. Smith - Your Survival Guy
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