Historically, the percentage of people retiring with no retirement savings has averaged 25%. For the Baby Boomer generation, which is now retiring at a rate of 10,000 per day, the rate is far higher. 42% of Baby Boomers have zero saved for retirement. This will be a struggle for the country because it is going to force large numbers of them below the poverty line if they are unable to work.
On top of their poor savings rate, Social Security is scheduled to run out of money in 2029, just 13 years from today, which may lead to a 29% reduction in benefit payments to retirees. Two popular ideas to restructure social security that slightly delay their insolvency include: reducing payments to high earners and slightly raising social security taxes. But neither of these will provide nearly enough money to make the program solvent.
Since the foundation of social security retirement in 1935, it has never been more important to save your own money for retirement. Pension benefits are being cut or scrapped and social security payments may have to be cut in a decade. So that leaves your own saving and investing as your primary financial plan to support yourself in your golden years.