(NewsNation) – Americans are less prepared for retirement than in previous years, according to a new survey from Fidelity.
According to the study, Americans have only 78 percent of the money they should have saved for retirement, and more than half of Americans may have to make significant lifestyle changes in their retirement years if they don’t make up the shortfall. .
The factors cited include shrinking savings as Americans grapple with inflation that continues to push the cost of essentials, from gas to groceries, higher even as wages do not keep up. Recent research shows that 60 percent of Americans live paycheck to paycheck, making saving difficult.
Experts say the first step in retirement planning is understanding what to plan for. That includes understanding life expectancy and predicting what the cost of living might be in your golden years, something a financial planner can help with.
Once you know how much you need to put away, figure out a retirement plan that works for you, whether it’s an employer-sponsored 401K or an individual retirement account, and prioritize your financial goals when creating a budget.
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