About 39% of Americans are not contributing to any retirement fund and 30% believe they will never be able to retire comfortably, a recent MSN article says. 

Twenty-eight percent of Americans between the ages of 18 and 65 say they have nothing saved for retirement, according to the article. 

“Moreover, the decline in traditional pension plans further exacerbates the retirement savings crisis,” the article says. “While half of working households aged 50 to 60 had defined benefit plans in 1989, this number dwindled to a mere quarter by 2022. As a result, individuals are becoming increasingly reliant on personal savings to fund their retirement.” 

A Yahoo Finance article says 60% of Americans have less than $50,000 saved for retirement. Forty-five percent of people age 65 or older and 56% of those 55-64 had less than $50,000 saved. The number increased as the age dropped, according to the article. 

Nearly 50% of boomers don’t think they’ll be able to retire by age 65, according to the article. 

Scott Broaddus, Irongate Capital Investors partner, said one advantage for those looking to start saving is that more companies are starting to match employee contributions.

“They should really be checking to see if a match is offered and trying to save at least as much as the company match,” Broaddus said. 

Broaddus also suggests investing in a Roth IRA fund, which you can contribute after-tax toward retirement. 

“You have more spendable money because you have already paid the income tax,” Broaddus said. 

It is important to start saving as early as possible, Broaddus said. 

“The stock market average rate of return for the last 100 years has been 7%,” Broaddus said. “This means money doubles roughly every 10 years. You want as much money in there as early as possible.” 

Broaddus said the faster money can be saved, the more time it has to grow. This means less money an investor has to contribute to the fund overall. 

“If someone can live off 90% of what they make and save 10%, that will put them in a strong position for retirement,” Broaddus said. 

The IRS also recently announced an increase in the amount individuals can contribute to their 401(k), 403(b), most 457, and Thrift Savings plans in 2024. The limit increased from $22,500 to $23,000. 

The catch-up contribution limit for employees aged 50 and older for these plans remains $7,500, with an annual contribution limit of $30,500. 

Annual contributions to an IRA increased from $6,500 to $7,000. Deductions taxpayers can make on IRAs also were raised. View the complete list of changes here. 

Broaddus is one of the retirement plan account representatives who can help companies wanting to make changes to plans offered through the Society of Collision Repair Specialists (SCRS). He can be emailed at Scott.Broaddus@irongate-capital.com. More information can be found at scrs.com/401k/. 

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