Most Baby Boomers are well aware that the nation is facing a retirement crisis. A substantial number of individuals to do not have enough money saved to sustain them once they leave the workforce. Despite being aware of the necessity of putting away money for retirement, many soon-to-be retirees are not doing what they should, according to a new survey.
Capital One ShareBuilder's Financial Freedom Survey found that while 93 percent of working Americans know that they should be contributing to a retirement plan, only 72 percent are actually doing so. The survey also found that many Baby Boomers are prioritizing their children's educational expenses over their retirement needs.
While college education is certainly important, putting off retirement saving could be detrimental for the entire family, according to Dan Greenshields, president of Capital One ShareBuilder.
"Everybody would like to put their kids through college, but it's not a financial option for everyone," Greenshields told FOX Business. "Your child can get a loan for school, but you can't get a loan for retirement."
Greenshields added that many Americans make the mistake of thinking about short-term financial goals like saving for a vacation or car instead of life outside of the workforce. For many people, retirement will last for 20-plus years. Meager savings and paltry Social Security income will not be enough to get you through this time.
According to the survey, the majority of Boomers still in the workforce say that they will retire at age 65. More than half of these individuals acknowledge, however, that they do not have enough money to maintain their current quality of life.
To ensure that you can retire comfortably, you may want to consider alternative wealth preservation strategies.