I spoke to another individual last week about the importance of financial planning. She is married, both her and her husband work. However, they have no idea about the state of their money and they have accumulated little, if any, savings. They are 40.
40 is not too late to start. However, the statistics are quite disturbing. The U.S. Department of Health, Education and Welfare prepared a study which tracked a representative sample of people from 20 to 65 years of age. And they uncovered that by age 65, for every 100 people:
- 1 was wealthy
- 4 were well off
- 5 were still working because they had to
- 36 were dead
- 54 were dead broke, barely surviving off family or the government
According to Merrill Lynch, today’s average 50 year-old has only $2,300 saved toward retirement.
After I spoke with this person about financial planning, she thanked me although she admitted that she was quite concerned. I told her not to worry too much. The best time to start saving is now. The most advantaged savers are those who start young and keep with it for life.
$2,300 at age 50? Hard to believe.