Far too many Americans are putting off retirement planning, relegating it to the same peripheral space in their brains as that missed trip to the gym: We know we need to do it, but something more pressing — more immediate — always takes precedence. However, just as there are adverse health outcomes to a sedentary lifestyle, Americans who haven’t adequately saved for their retirement must face the music one day.
According to a 2022 Federal Reserve survey of consumer finances, only slightly more than half of all Americans (54%) have retirement accounts. Most American workers save for retirement via an employer-sponsored 401(k) account, with one recent survey showing that 6 in 10 workers with access to a 401(k) were contributing. However, that means 40% of their colleagues were opting out — a decision that could hurt them later in life.
