These days, looking for a savings account that pays even more than 1 percent annually can look like an exercise in futility. At today’& rsquo; s deposit rates, your savings are unlikely to even equal inflation (presently at 1.5 percent).
The situation for those over 50 is, well, abysmal. In spite of their age, many of individuals in this group have relatively little in cost savings. A current Associated Press-NORC Center for Public Affairs Research study disclosed that 39 percent of workers over 50 report having less than $100,000 in cost savings, and 24 percent have less than $10,000 –– this at a time when their retirement savings need to be between 8 and 11 times their yearly earnings. In addition, this age is generally less going to accept the risks linked with pursuing higher rates of return, which makes it even harder to compensate for this type of shortfall.
If you’re not among the over-50 group, exactly how does this impact you? Aside from the paltry sums your short-term savings are likely earning, today’s low yields may also put your very own retirement fund behind schedule. To compensate, you’ll either need to save even more aggressively or remain in the workforce longer. In either case, you might also be contending with even more retirement-age workers for jobs, who themselves may be attempting to increase underfunded nest eggs.
How are you handling reduced interest rates? Share your strategy! Have you discovered a savings account with an extraordinary rate of interest or a various automobile to conserve for retirement?
VN:F [1.9.22_1171]Ask the Readers: How are you coping with low interest rates?,