The Economic Policy Institute (EPI) reports that “nearly half of families have no retirement account savings at all.” It seems that Americans are frighteningly unprepared for the eventuality of aging.
According to the EPI, the median retirement savings for all U.S. families is just $5,000. This means that half of all families have less than $5,000 in retirement savings, and half of all families have more. However, the average retirement savings of all U.S. families is $95,776. How can this be? Why is there a huge disparity between the median and the average?
EPI researchers explained that the large gap indicates inequality. The large account balances for very wealthy families drives up the average. The EPI reported: “Participation in retirement savings plans is highly unequal across income groups. In 2013, nearly nine in 10 families in the top income fifth had retirement account savings, compared with fewer than one in 10 families in the bottom income fifth.” The report states that wealthy families have gotten wealthier, while low-income families have gotten more poor.
How Much Should I Have For Retirement?
According to Fidelity, to be financially ready to retire at age 67, you should have 10 times your final salary in savings.
What Happens to My Retirement Accounts If I File for Bankruptcy?
In Georgia, most ERISA qualified retirement accounts are fully protected through bankruptcy. This means that you get to keep all of the funds in your retirement accounts, even while erasing your debts through bankruptcy.
After erasing dischargeable debt through bankruptcy, many people find they have more money each month even after their bills are paid. In this situation, it is an opportunity to put more money into a 401(k) or other retirement account.
How Can Bankruptcy Help Me?
We’re committed to helping people get out of debt and gain the financial freedom they deserve. We invite you to learn more about who we are here. If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options, let’s meet for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.