An HSBC survey found that only 40 percent of Americans are regularly saving money for their retirement. Additionally, two other surveys from the Consumer Federation of America (CFA) and Employee Benefit and Research Institute (EBRI), reveal that only about 50 percent of those Americans have focused retirement goals and around 40 percent are saving for a realistic, sustainable standard of living.

To many, the biggest obstacle is obtaining accurate advice about the options, risks, and benefits of retirement savings, but that is just one of the problems facing retirees today. There are 5 other major struggles:

No Employer 401(k)

An EBRI analysis of a recent Census Bureau data reported that under 50 percent of employed Americans have access to a retirement plan at work. Of those that do have access to a 401(k), only about 40 percent participate. According to President & CEO of EBRI Dallas Salisbury, this 40 percent are really missing out. “Those who have workplace programs and are participating, they are doing significantly better than those who are not.”

If you have access to an employer-sponsored retirement plan, we can’t stress enough what a valuable asset that is to your future. For those who don’t have this option, IRAs are a good place to put aside money.

Unforeseen Life Events

Even retirees who are careful about for their futures face unexpected life events such as deaths, life-threatening illnesses, and accidents. When this happens, what we often see is retirees ceasing to contribute to their accounts, or borrowing against their retirement due to costs associated with these unforeseen events. According to the HSBC, 27 percent who face these struggles say they would borrow against their savings, 13 percent were prevented from working due to accident or illness, and 6 percent ceased working to care for a spouse, therefore unable to afford monthly contributions.

Executive VP of retail banking and wealth management at HSBC Bank USA Andy Ireland reportedly stated that though retirement funds are a great nest egg for the future, they can also be a liability when life emergencies happen.

“Retirement savings are vulnerable to being raided to deal with serious financial hardship resulting from unforeseen life events.”

Debt

According to data from NerdWallet, the average American household has over $15K of credit card debt and over $130K in total debt. If broken down per year, each household is paying out nearly $7K in interest alone. To compound the debt problem further, the median household income has shown negligible gains while household debt continues to rise.

When retirees are trapped in this cycle of debt, they are often too busy keeping up with credit card, mortgage, and other varying payments to contribute to retirement funds. For those who are buried in debt, there are ways to effectively dig out as detailed in our previous blog post 6 Ways To Improve Your Relationship To Your Money. Though getting out of debt is no small feat, taking little steps right away can lead to a light at the end of the tunnel.

“Underemployment” and Employment Instability

According to the U.S. Bureau of Labor Statistics, unemployment has fallen to a 5 percent, but the statistics don’t tell the whole story. “Underemployed” individuals (those who can’t find full-time employment) are actually at 10 percent. Since the financial recession in 2008, many Americans are struggling to reach financial stability, often living hand-to-mouth and unable to save.

According to an article on MarketWatch:

“Those who once enjoyed a modicum of financial stability have settled into a new normal of ongoing financial vulnerability, while the struggles of those who were financially insecure before the recession have only deepened.The number of households below the poverty line has barely budged and millions of low- and moderate-income people live paycheck to paycheck.”

The Retiree

GoBankingRates research revealed that 1 in 3 Americans have a startling zero dollars saved up for retirement. In other words, one of the biggest obstacles to a robust retirement fund is the retiree.

Many retirees consider thinking about setting up retirement funds as an obstacle. This thinking is most likely lack of education according the GoBankingRates’ Kristen Bonner. Finding and obtaining that education can be a difficult challenge, especially for Americans who are already facing all the other obstacles we’ve just detailed. The daunting task of navigating the options of retirement can seem impossible; but employing a trustworthy retirement advisor greatly decreases the stress.

When attempting to get better at ensuring you will have a better quality of life in retirement age, obstacles can come in many forms, but the most detrimental is the belief that getting information about your options is impossible. If a retiree can first ask for help from a reliable source, preparation to combat the other obstacles can begin.