I’m sharing with you some facts I gathered upon reading a magazine insert of the New York Post on what’s really happening with a lot of us with our money.
People are saving less.
- The Commerce Department reported that Americans are saving at the lowest rate since the Great Depression.
- Personal savings stood at a national level of negative $6.2 million in January.
- About 40% of Americans say they are saving nothing for retirement. One reason: Over the past year, inflation rose 4.3% while salaries rose only 3.4%.
- One on four Americans told the Employee Benefit Research Institute that they have no savings at all.
Retirement is coming later and later.
- The percentage of Americans 55 or older working full time increased from 54.2% in 1993 to 64.4% in 2005.
- Nearly one in four people between 65 and 74 was still in the labor force in 2006, compared with just one in five in 2000.
- A recent study indicates that 17% of workers have suffered a reduction of retirement benefits offered by their employers in the last two years. Of these, only one third say they are saving more for their retirement as a result.
Student debt is piling up.
- Tuition cost have climbed 60% since 2000, and the average graduating senior now owes more than $20,000, according to the National Center for Education Statistics-twice as much as graduates owed a decade ago.
- Nearly a quarter of recent grads owe in excess of $25,000.
- While student debt rose, 8% from 2005 to 2006, starting salaries rose only 4%.