Lack of retirement savings compounds financial challenges

Major financial issues often originate from a series of minor difficulties that quickly escalate out of control. In fact, many Miami residents currently considering their debt relief options may concede that their debt became unmanageable before they had the opportunity to properly address it. Personal savings is often the first thing that people rely on to cover their expenses, and retirement savings may be the thing that takes one of the largest hits as a result.

In its efforts to stabilize the national economy following the recent recession, the Federal Reserve lowered interest rates. And while doing so is believed to have had a positive impact on some aspects of the economy, it is also negatively affecting some people attempting to save for retirement. The issue is compounded by the fact that there is evidence to suggest that a huge number of Americans do not have any retirement savings at all, according to a recent study.

Bankrate.com estimates that of people between that ages 50 to 64, a little over 25 percent do not have retirement savings. And only a little over 30 percent of adults under the age of 30 are beginning to save for retirement. The study involved around 1,000 adults and ultimately concluded that over one third of people are not accounting for their future retirement-related financial needs.

The survey did suggest that some positive factors are playing into retirement savings rates as well. For one thing, more 20-something people are estimated to have begun saving for retirement, and 401(k) plans have increased in value in recent years. Addressing serious financial challenges early can help to safeguard retirement savings later on. An experienced lawyer can help clients understand their debt relief options and opportunities.

Source: The Los Angeles Times, “36% of adults lack retirement savings – 14% of them 65 or over,” Jim Puzzanghera, Aug. 18, 2014