The following is an excerpt from Millie Dent | April 26, 2016 | Thefiscaltimes.com |
If you are among the nearly 50 percent of Americans living paycheck to paycheck, you probably know that saving for retirement and unexpected expenses is critical, but you might not think you have the ability to do so, new research finds.
A study by Fifth Third Bank found that even though more than half of Americans know that an emergency fund should contain six months’ worth of living expenses, two-thirds don’t have that much set aside. In fact, a little under one third don’t have anything saved.
And even though more than eight in 10 know how to plan for retirement, only 50 percent of them actually contribute to a retirement plan, like a 401(k) or IRA. In addition, just half of Americans know how much money they have saved for retirement — if they have any at all.
Jeff Witherspoon, executive director of the Consumer Credit Counseling Service, advises people to have an emergency fund that equates to at least three to four months in typical living expenses. “A lot of people say they can’t do that, but it’s like eating an elephant. You’ll get there over time.”
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