An Overwhelming Majority of Workers Are Saving Less for Retirement Than They Think They Should
You need retirement savings to live comfortably as a senior. That may seem like the sort of advice you'd acknowledge by rolling your eyes and offering up a nod of appeasement, but here's the deal: Once you retire, you'll generally need a good 70% to 80% of your former paycheck to pay your bills and continue living the way you want to.
Social Security, if we're lucky and benefits aren't slashed in the future, will replace about 40% of the income you're used to living on, assuming you're an average earner. This means that if you retire on Social Security alone, you'll be short 30% to 40% of your former wages. And at that point, you'll need to make some serious lifestyle compromises -- something most people hate doing, in general, but especially when they're older.
So let's get back to our initial point: You need retirement savings to fund your senior years. There's no getting around it. But new data from Willis Towers Watson tells us that 70% of workers today are saving less for retirement than they think they should.
Source Fool.com
