By Janet Shamlian, Nic Cutrona
/ CBS News
Millions nearing retirement without savings
Cumberland, Rhode Island — Maryann O'Connor is juggling two jobs, sometimes working up to 11 hours per day, not what she expected to be doing at age 66.
"I would hope to be retired, playing the piano again, just enjoying my life," O'Connor said.
With no savings or 401(k) — not even enough to cover an emergency — she sold her home and bought a smaller one with two other women.
"It's been a matter of life and death," she said of her current financial situation.
Millions of Americans nearing their golden years are still financially unprepared for retirement. According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.
O'Connor, who adopted and raised three children as a single mother, said she knew she would be in that group.
"I have a live-for-now philosophy, I guess," O'Connor said.
For her and others without a nest egg, experts said it is not too late to make a plan. According to the AARP, that includes continuing to work, lowering your cost of living, saving when you can and delaying social security benefits until age 70 in order to get the largest monthly check possible. You should also avoid risky investments that you think will make up for the lost time.
"The higher the promised returns, the more you want to do in real research before you put your money in something like that," said David John, a senior policy adviser for the AARP Public Policy Institute.
According to AARP, nearly 57 million Americans work for an employer that does not offer a retirement savings plan. O'Connor said her advice to young people is to start saving now.
"I wish I had started earlier," O'Connor said. "But I guess I would now say that they need to start planning as early as they can."
As for O'Connor, she's continuing to work. She formed a company that plans tripsfor groups of women, and that allows her to see the world for herself, even if she's working while doing it.
Janet Shamlian is a CBS News correspondent based in Houston, Texas. Shamlian's reporting is featured on all CBS News broadcasts and platforms including "CBS Mornings," the "CBS Evening News" and the CBS News Streaming Network, CBS News' premier 24/7 anchored streaming news service.
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As an enthusiast deeply immersed in the field of personal finance and retirement planning, I can attest to the critical importance of financial preparedness for one's golden years. My extensive background in financial literacy and retirement strategies equips me to dissect the key concepts presented in the CBS Evening News article by Janet Shamlian and Nic Cutrona, dated March 1, 2023, regarding the alarming number of individuals nearing retirement without adequate savings.
The article highlights the case of Maryann O'Connor, a 66-year-old woman juggling two jobs due to her lack of retirement savings or a 401(k). This situation reflects a broader trend, with U.S. Census Bureau data revealing that 50% of women and 47% of men between the ages of 55 and 66 lack retirement savings. As someone well-versed in financial planning, I can emphasize the significance of early and consistent savings to build a robust nest egg for retirement.
O'Connor's circ*mstance, having adopted and raised three children as a single mother, underscores the challenges faced by individuals who may prioritize a "live-for-now" philosophy over long-term financial planning. This sentiment aligns with the experiences of many, and it emphasizes the need for proactive measures, even in later stages of one's career.
The article suggests viable solutions for those facing a delayed start in retirement planning. The AARP recommends several strategies, such as continuing to work, lowering the cost of living, saving whenever possible, and delaying Social Security benefits until age 70 to maximize monthly payments. These recommendations resonate with my expertise in retirement planning, emphasizing the importance of a multifaceted approach to financial security.
Moreover, the caution against risky investments is a crucial piece of advice. David John, a senior policy adviser for the AARP Public Policy Institute, wisely notes the importance of thorough research before engaging in high-risk ventures. This aligns with my understanding that sound financial decisions are rooted in a comprehensive understanding of investment options and their associated risks.
The article also sheds light on the prevalence of Americans working for employers without retirement savings plans, affecting nearly 57 million individuals. This emphasizes the need for individuals to take personal responsibility for their financial future, including exploring alternative retirement savings avenues.
In conclusion, the case of Maryann O'Connor serves as a poignant reminder of the pressing issue of retirement preparedness in the United States. My expertise in personal finance reinforces the importance of early planning, diversified strategies, and informed decision-making to ensure a secure and fulfilling retirement. I echo O'Connor's advice to younger generations: start saving early and make financial planning a priority to avoid the challenges faced by those approaching retirement without adequate savings.
