Single and Broke In Retirement?

We recently came across a news report that highlighted the fact that “singles” in the U.S. are more likely NOT to have a retirement account. In fact, only 51 percent of unattached people have a retirement savings account, according to a study released Wednesday by Mintel. (Mario Petitti / Chicago Tribune)

The population of single people is rising with almost half of adults today not living with a spouse, according to the U.S. Census. That’s up from about 30 percent in 1967.

“More Americans are staying single longer, and our data shows this trend will hold out for the foreseeable future,” Robyn Kaiserman, Mintel financial services analyst, said in the report.

Regrettably, the percentage of singles that have a retirement account is far less than people who are living with a partner or who are married, the research firm said.

Retirement savings accounts have been set up, in contrast, by 68% of people living with a partner and 84% of married adults.

We, at KCS, suggest that Americans overall need to take retirement more seriously, especially those not in a traditional DB plan.

For participants in defined contribution plans, just 27% contribute the maximum allowed to their plan, and 22% say they contribute only enough to get the employer match.

Whether you are single or not the key to funding a successful retirement is to start saving / investing early in life and be consistent (save with every paycheck). Taking advantage of a matching 401k plan should be a no brainer. Unfortunately, the power of compounding is lost on many people. But, why should that be a surprise? We provide so little financial literacy in our schools!