| A majority of workers over age 40 do not have sufficient retirement savings and aren't setting aside enough to try to catch up. That was the key finding from a recent study from the Insured Retirement Institute.
That does not come as a surprise to me, given all the data out there about how most Americans are way behind when it comes to saving for retirement.
However, what actually left me shaking my head was when CNBC's Kate Dore reported that despite the obvious savings shortfall, many of those same workers who were polled still believe they can retire early and feel they will have ample retirement income.
That's simply being unrealistic.
Numbers do not lie. You either have enough in retirement savings or you don't.
These folks are not facing the reality of retirement readiness. Sadly, it will be a very difficult wake-up call when many of these people get closer to retirement and actually crunch those numbers and come to realize there's a distinct possibility they will outlive their savings.
Indeed, there's a very real chance many Americans won't have enough money to support themselves through their later years.
The good news is that there's still time to build on that retirement savings.
To do so, however, people need to focus on a retirement readiness plan. Readiness requires discipline, clearly defined goals and a solid game plan. Being ready for retirement means you are generally on target to meet your income goals in order to maintain the same standard of living you have while working.
So, what do you need to do to get ready for retirement?
Start saving, keep saving and stick with it. Consider basic investment principles. Identify your retirement needs. Contribute to your employer's 401(k) retirement plan. Put money in an individual retirement account. And, DO NOT touch your retirement savings.
For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. |
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