Retirement Savings: Geeks Are Struggling
Regardless of your generation — Millennial, Generation X or Baby Boomer — chances are you’re struggling to put aside retirement savings. Some of us in the technology sector hoped to build and sell companies that would fund our retirements. Others hoped the big IPO or lucrative stock options would deliver a windfall for our nest eggs. But the reality for most of us is quite different.
Consider these stats from Edward Jones:
- 45 percent of non-retired Americans are not currently saving for retirement.
- Only 36 percent of the non-savers plan to put aside money for retirement in the future.
The challenges cut across all generations, according to Edward Jones’ research:
- Baby Boomers: Only 19 percent of Baby Boomers have $250,000 or more saved for retirement. Four in 10 have no savings.
- Generation X: Roughly 64 percent started saving for their retirement in their 30’s or earlier, but they’re also weighed down by big mortgages and kids who are now approaching college age.
- Millennials: They’re busy paying down college debt — averaging $30,000 for the average college graduate with a bachelor’s degree.
Entrepreneur’s Dream Becomes a Nightmare?
The situation is especially challenging for IT entrepreneurs — including those who build and run IT service provider companies.
- Bad: Indeed, 60 percent of entrepreneurs don’t save enough for retirement, according to American Express.
- Worse: Another survey suggests 70 percent of self-employed business owners don’t save regularly for retirement — including 28 percent of those folks who aren’t saving at all, according to TDAmeritrade.
Still, there are at least six ways for small business entrepreneurs to set up retirement plans for themselves, while potentially extending such benefits to their employees.