A recent survey found that 22% of the respondents had been forced to retire an average of seven years earlier than they had expected. While layoffs and corporate downsizing were the most often cited reason for retiring early, other reasons included illness, injury, and family obligations. Approximately 55% of those who retired early did so before they were able to receive Social Security benefits. Most indicated that they were only able to save half of the amount they had wanted to save for retirement. Steps they needed to take to combat this included reducing expenses (61%), reducing vacations and social activities (47%), collecting Social Security before they wanted to (43%), and using money from a 401(k) plan or IRA (30%) (Source: Financial Advisor, January 2007).
Fewer than half of all Americans have an IRA and only 37% of IRA owners contributed money to their accounts in 2006 (Source: Investment Advisor, 2007).
Among 11 countries surveyed, American workers saved the most, an average of $696 per month, for retirement. This was more than double the amount saved by workers in Germany, Italy, and France (Source: Plansponsor.com, 2007).