Occasionally I remind folks that rates are low.
They know that, but to remind them even further, I tell them that if Mr. & Mrs. Smith spend their working lives and save up $1 million for retirement, and then, to be safe, want to invest it in a “risk free” 10-yr Treasury note, they’ll earn about 1.8%, or only $1,500 per month for the next ten years!
To me, a million dollars is a pretty good nest egg, but when put into this context?
And as it turns out, even this $1 million isn’t likely. According to the latest survey, about 49% of Americans say they aren’t contributing to any retirement plan.
People ages 18 to 34 are the least likely to be saving, with 56% reporting that they are not currently contributing to a retirement plan like an IRA or a 401(k).
I hope everyone isn’t relying on Social Security.
–49% of Americans Saving Zilch For Retirement