(NewsNation) — About a quarter of Americans above the age of 50 say they expect to never retire as the cost of living rises faster than their income, according to a new AARP study.
Certified financial planner Shinobu Hindert joined NewsNation’s “Morning in America” with tips on how to plan for retirement amid rising prices.
Hindert says when planning for retirement, a person should ideally have the equivalent of one year’s salary saved by the time they are 30, three times their annual salary by the time they are 40, six times their salary by the time they are 50 and eight times their salary by the time they’re 60.
“We’re seeing the first generation retire right now without a majority of their income coming from a pension. Those data points will come out in the next 15 years. So for people that are gearing up for retirement, try to save as much as you can. And think about what you want your life to look like when you retire,” Hindert said.
For those who may be behind on their saving goals, Hindert recommends focusing on what they can do in the short term.
“If you have an employer sponsored plan like a 401-K, start increasing your contributions by 1% to 3%, target to save 15%. And if you’re not there yet, that’s okay. Just put a calendar reminder every three months to see, can I bump it up by 1%?”
About 1 in 4 Americans have no retirement savings, according to research released Wednesday by the organization that shows how the aging American population is worrying more and more about how to make ends meet, even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years of record inflation.
Everyday expenses and housing costs, including rent and mortgage payments, are the biggest reasons why people are unable to save for retirement.
The data will matter this election year as President Joe Biden and Republican rival Donald Trump are trying to win support from older Americans, who traditionally turn out in high numbers, with their policy proposals.
The Associated Press contributed to this report.
