One out of four investors in the U.S. began saving for retirement before turning 25, according to a recent Gallup survey. Seven percent of them started before turning 20.
This data comes from the Wells Fargo/Gallup Investor and Retirement Optimism Index, which surveyed more than 1,000 American adults with at least $10,000 in investable assets.
Ninety-one percent of respondents said that they invest in order to save money for retirement.
When asked about the age they began saving for retirement, 28% of respondents said 30-39 years old. Twenty-three percent began at ages 25-29, 19% were 20-24, 14% were 40-49, 8% were 50+ and 7% were 20 or younger.
The average age that respondents began saving was 29 years old.
Beginning the savings process during their 20s set some of the investors up for very large long-term gains due to compound interest. This is sometimes called “snowball savings.”
Many investors said that they are currently saving as much as they can, with 26% saying they could not afford to save any more than they already do.
Twenty percent of respondents said they could probably save less than $200 more per month. Eighteen percent could potentially save $200-$399 more each month, 16% could do $400-$999 more and 15% could save more than $1,000 additional per month.
The possibility of losing out on social security by retirement could impact the way that some people choose to invest and save money. Though 44% said that hypothetically losing social security benefits by retirement would not make a difference in their investing, 24% said it would make them save a little more and 30% said it would make them save a lot more.
Additional savings may not be a bad idea, according to Gallup. Without additional revenue, the government may only be able to pay about 76% of Social Security benefits by 2037, the report said.
Please Leave A Comment
Related posts:
Study: More than Half of American Investors Use Professional Advice for Personal Finance
Seniors Put Off Retirement, Delays Increasing
American Investors Prefer Financial Advisors to Online Help
Americans Better at Retirement Planning, but Still Need Improvement
Survey: American Investors Reach 7-Year High for Optimism