Five Mistakes That Are Slamming Your Retirement Savings

Americans are making a series of easily fixable mistakes that are slamming their retirement savings. First, they are not starting to save early enough. Someone earning $30,000 who starts to save 11 percent annually at 25 years old would have a balance at retirement of about $370,000, according to Frederik Axsater, global head of defined contribution SSGA (STT) - Get Report . The same person, using the same investment strategy, who waits until they're 40 would only amass a little over $150,000, or a nearly 60 percent difference. Next, they are not saving enough. In Axsater's view, the compression of long-term capital market expectations combined with greater life expectancy is causing a gap in retirement security for participants. With encouragement and nudging from plan sponsors, participants can increase participation, savings rates and duration of contributions. Currently 40 percent of employees don't have access to a retirement savings plan through their employer, according to Axsater. 'Left with too many decisions about when to save, how much to save, how to invest, when to retire, and how much to spend in retirement leaves participants overwhelmed and often results in them taking no action at all,' said Axsater.