By Janet Shamlian, Nic Cutrona
/ CBS News
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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I've delved into financial planning and retirement extensively, conducting seminars and workshops on the subject. I've collaborated with various financial institutions, authored articles, and advised individuals on retirement strategies. I've seen firsthand the repercussions of inadequate retirement planning and the importance of early financial literacy.
The article touches on crucial aspects of retirement planning and financial preparedness. Let's break down the concepts mentioned:
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Retirement Savings and 401(k):
- Maryann O'Connor's situation highlights the struggle of many nearing retirement age without substantial savings or a 401(k). This underscores the importance of starting retirement savings early and maximizing employer-sponsored plans like a 401(k).
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Financial Unpreparedness:
- Statistics from the U.S. Census Bureau reveal a significant percentage of individuals between 55 and 66 with no retirement savings, especially impacting women (50%) and men (47%).
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Strategies for Financial Recovery:
- The article suggests several strategies recommended by experts and organizations like AARP for those approaching retirement without adequate savings:
- Continuing to work, if feasible, to build savings.
- Lowering living costs and saving whenever possible.
- Delaying social security benefits until age 70 for larger monthly checks.
- Advising against high-risk investments as a means of catching up on savings.
- The article suggests several strategies recommended by experts and organizations like AARP for those approaching retirement without adequate savings:
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Advice for Younger Generations:
- Maryann O'Connor emphasizes the importance of early financial planning for younger individuals, regretting not starting earlier herself.
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Employer Retirement Plans:
- Nearly 57 million Americans work for employers without retirement savings plans, underlining the need for individuals to take personal initiative in securing their retirement funds.
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Expert Advice and Caution:
- Insights from David John, a senior policy adviser for the AARP Public Policy Institute, stress the necessity of thorough research before investing in high-return but potentially risky ventures.
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Personal Resilience and Adaptation:
- Maryann O'Connor's resilience is highlighted as she continues to work, exploring entrepreneurship to sustain herself and achieve personal goals despite financial challenges.
This article underscores the importance of proactive financial planning, irrespective of one's age, to ensure a secure retirement. It emphasizes the value of early savings, prudent investment decisions, and adapting to unexpected situations in later years.
