Americans not saving enough for retirement

Americans not saving enough for retirement
(Source: WTOL)
(Source: WTOL)

TOLEDO, OH (WTOL) - If you just filed your taxes and you're getting a check from Uncle Sam, you may want to think about putting it away.

The Economic Policy Institute says the median retirement savings for folks ages 44 to 49 is only about $6,200. Financial experts say there are a couple of reasons for that.

Alan Lancz of Alan B Lancz and Associates said people are procrastinators by nature and they also want the instant gratification of buying that shiny new car. Plus, "Unfortunately, people have taken money out of their 401k and they think, 'oh, I'm gonna borrow again and I'll put it back,' and then they never do," said Lancz.

So what can you do to get on track? Lancz suggested to contribute as much as possible into your 401k, at least as much as your employer matches.

"If there's a match up to three percent, if you put in only three percent, you're getting 100 percent on your money. You're not gonna get that anywhere, so I would try to put the maximum in," said Lancz.

Lancz also said in addition to a 401K, you can put money into a health savings account.

"You can put money in. It's tax deductible. And if you don't use it, you can take it out without paying taxes on it when you retire. So it's actually better than a 401k when you're talking savings because in a 401k, when you take it out, you start paying taxes on it," said Lancz.

Lancz also said to make sure you're putting money into an emergency savings account, so you don't have to pull as much from your 401k once you retire.

Financial experts also say check with your bank to see how much interest you're earning and ask for an increase.

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