We’ve all heard it before: Americans are lousy when it comes to saving for retirement. The justification for the lack of savings ranges from economic hardship to our inability to escape the consumerism that surrounds us on a daily basis. Regardless of the reason, many people refuse to change their financial habits. However, options are available to those who haven’t built a large nest egg for retirement.
An unsurprising portion of Americans have nothing saved for their golden years. According to a survey by Bankrate, 33% of 30- to 49-year-olds have not saved any money for retirement, while 26% of 50- to 64-year-olds say the same. In fact, 14% of people 65 and older haven’t placed any money aside for the future, either. Yet the majority of Americans feel the same or better about their personal finances than they did last year.
How much do you really need to save for retirement? The answer clearly depends on your own situation, but people are typically told they need to save $1 million or more. It’s safe to say that many Americans will not accomplish that milestone. Fortunately, there are effective financial actions you can take to help compensate for a lack of savings. Let’s take a look at three alternatives to accumulating a million-dollar nest egg.