More than 1 in 4 Americans (26%) have less than $1,000 in savings, according to a new report from the Employee Benefit Research Institute.
Only 16% of respondents said they had between $1,000 and $10,000 stashed away for a rainy day.
Workers are told to save at least 10% of their income each year. That means someone earning $30,000 should tuck away $3,000 into a 401K or similar program, an unachievable amount for many workers who are struggling to pay their rent and cover bills.
The report showed 27% of couples saved less than 10% of their household income last year.
Among the biggest reasons for not saving money are day-to-day expenses, small paychecks, education costs, and paying off debt.
If there is one bit of good news, it’s that more people are saving now than 2009.
Experts say you will need 70% of your annual pre-retirement income to live comfortably.
In the survey, more than half of workers admitted that they have never attempted to figure out how much they will need to save to retire comfortably.