No Retirement Savings

Feb. 22, 2011
It's such a startling number that it takes a while for it to sink in. Some 34% of Americans have no retirement savings and 27% have no personal savings, according to a recent Harris Poll. Moreover, those numbers are worse than 18 months ago, when they ...

It's such a startling number that it takes a while for it to sink in. Some 34% of Americans have no retirement savings and 27% have no personal savings, according to a recent Harris Poll. Moreover, those numbers are worse than 18 months ago, when they stood at 30% and 22% respectively.

High persistent unemployment is causing people to dip into their savings to pay everyday bills. In addition, the lesson younger workers seem to have taken from the financial crisis is not to trust the stock market. So while traditional financial planning called for younger workers to be heavily invested in the stock market and reap long-term appreciation, they instead are choosing less risky investments. Only 16% of Echo Boomers (18-33) have their retirement savings mostly in stocks and/or mutual funds, while 27% of Gen Xers (34-45) are doing so.

Against a backdrop of possible cutbacks in Social Security benefits and in government pensions, it's more important than ever for employers to encourage their workers to save - for now and the future.

About the Author

Steve Minter Blog | Executive Editor

Focus: Global Economy & International Trade

Email: [email protected]

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An award-winning editor, Executive Editor Steve Minter covers global economic and international trade issues, tackling subject matter ranging from manufacturing trends, public policy and regulations in developed and emerging markets to global regulation and currency exchange rates. As well, he supervises content production of all IW editorial products including the magazine, IndustryWeek.com, research and informationproducts, and executive conferences. 

Before joining the IW staff, Steve was publisher and editorial director of Penton Media’s EHS Today, where he was instrumental in the development of the Champions of Safety and America’s Safest Companies recognition programs.

Steve received his B.A. in English from Oberlin College. He is married and has two children.

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