SPRINGFIELD, Mass. (WWLP) – Americans aren’t saving for retirement like they should be.
Fidelity Investments found that more people are saving now than they were in previous years, but 55% are still at risk of being unprepared to cover the cost of housing, healthcare, and food during the years- or decades- of their retirement. Fidelity recommends retiring later in life.
Rick Bleser, a portfolio manager for St. Germain Investments, suggests that people close to retirement age should continue to invest for the years after they retire, and only take what they need out of their IRA. For younger people, he suggests not spending as much on luxuries, such as expensive cars. Instead, put the money you save into your IRA.
“I would encourage them to begin saving as early as they can, and also opt-in for automatic increases, so every year, you would save another percent or two, and over the longtime horizon, that should help grow your IRA value even faster,” Bleser said.
He added that it seems more people are making wiser investments, because they learned their lesson from the Great Recession of 2008.