7 Financial Facts About Americans That May Surprise You
1. One-third of Americans have $1,000 in retirement savings.
The Employee Benefit Research Institute conducted a study to determine how much Americans put away in savings for retirement. The study revealed that 36% of Americans had only $1,000 tucked away for retirement.
2. Many Americans plan to work until death.
Even more alarming is the fact that about half of Americans plan to work until they die. This is due to the fact that so many people do not have enough money saved for retirement, according to a survey conducted by Wells Fargo.
In the survey, 34% of workers plan on working until at least the age of 80, while 37% stated they are most likely going to work until they die.
3. Student loan debt is in the trillions.
Overall, students have borrowed anywhere from $900 billion to $1 trillion dollars for student loans. Around 14% of students who have taken out loans have at least one past due student loan account.
What’s more shocking is that studies have shown that two out of five student loan borrowers become delinquent on their account within the first five years of making an attempt to pay back their loans.
4. Americans hold more debt than savings.
A great deal of Americans hold more debt in credit cards and loans than for a savings account for things like an emergency. About 30% of Americans say they have more debt in credit cards than money in a savings account.
The bottom line is that Americans spend way too much and don’t save enough.
5. Those who save are still not saving enough.
Americans that make an attempt to save are not as financially stable as you may believe. A study conducted by the Corporation for Enterprise Development released a report that stated 44% of households in America are “liquid asset poor,” or have less than three months of savings.
6. Americans don’t fully understand 401(k) retirement plans.
Charles Schwab Corp. investigated whether or not Americans feel confident that they are saving properly. The survey they conducted revealed that 46% don’t know where to invest their money, and 34% are stressed when trying to make an investment.
If people are unsure how and where to invest in the first place, how can they make informed decisions on how to plan for retirement?
7. Half of Americans have a will.
Only half of Americans actually have a will. So if a person in a family were to unexpectedly pass away there is no telling how to disburse their money and assets properly.
If a person dies without a will, it can result in tension between family members and loved ones fighting over money and assets. It’s best to leave a will to ensure your belongings fall into the right hands, no matter how old you are.