Here’s How Much the Average American Couple Saves for Retirement
It’s no secret that Social Security is facing a severe funding shortage. If Congress does not do anything soon to shore up its trust fund, there will be no choice but to start cutting benefits. This is terrible news for the millions of older Americans who rely on Social Security for their retirement income. A recent Federal Reserve survey of consumer finances found that 60 percent of Americans do not have a retirement-specific savings account.
Even more worrisome is the fact that, according to Yahoo! Finance, there is a huge discrepancy between the average and median savings. At typical retirement age, ages 65 to 74, the average household retirement savings is $609,230. However, the median savings is only $200,000. That means half the people of retirement age have less than $200,000 saved to live out the rest of their lives.
It’s clear that something needs to be done to help financially strapped seniors. The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), and increased minimum benefits. This bill will also ensure the long-term solvency of the Social Security program — making sure it is available to all who need it.
