Many Americans have less than $1,000 saved for retirement. Here's how to start fixing it
A new report reveals a troubling picture of how unprepared many Americans are for retirement. The nonpartisan National Institute on Retirement Security found the typical U.S. worker has just $955 saved — far less than most people need to retire comfortably.
Financial experts say the numbers are a wake‑up call. And while saving can feel impossible as prices rise, they stress that small steps now can make a big difference later.
Why so many are behind
Jay Foley, a financial advisor and the president of MaxGuard Wealth, joined the latest episode of the In Your Corner podcast from CBS News Philadelphia to break down the report — and what consumers can do next.
Many families are paying rising prices for groceries, rent and child care, and saving feels impossible. Foley says it comes down to habits: people pay for streaming services and monthly bills automatically — but don't automate their retirement.
"Why the heck are we not doing the same thing with our retirement?" Foley said in the interview. "Retirement should be the first thing we're doing."
Simple steps you can take
- Max out your employer match if you have a 401(k). Foley calls it "free money."
- No 401(k)? Open an IRA or Roth IRA to start building savings on your own.
- Automate contributions so money moves to savings before you spend it.
- Start small. Even small bumps in your paycheck deduction add up through compounding.
Focus on income, not a "magic number"
Foley says retirement isn't about hitting a single savings target. It's about creating steady income through Social Security, investments and any pension benefits.
He also encourages people to consider rising health care and long‑term care costs — and to plan to live to at least age 95.
Want more tips?
You can watch the full interview and get more guidance on the In Your Corner podcast. The In Your Corner podcast is dedicated to providing practical solutions to everyday problems.
Each week will feature a different guest expert. You can find new episodes posted every Wednesday on the CBS Philadelphia YouTube channel.
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