According to the National Financial Capability Study which has occurred every 3 years since 2009:

• Out of Pocket Medical Expenses are a significant source of financial strain.
• Since low education and low income often go hand-in-hand with poor health and lack of insurance, households with low socioeconomic status are both more likely to face economic shocks and less prepared to deal with them.
• Those who are most likely to face a health shock — are 15 to 30 percentage points less likely to have money to cover an emergency than respondents on the opposite end of the scale.
• The NFCS-ALP reveals a widespread lack of planning. Only 40% of respondents have ever thought about their retirement savings.
• Only 47% of workers aged 40 to 59 have planned at all.
• Among younger (workers aged 18 to 39) the figure is much lower: it is only 31%.
• Even when it comes to individuals aged 60 and older, less than 50% have thought about planning for their post-work years.
• More than half of older workers on the verge of retirement have not done any retirement planning.
• As further evidence of the financial fragility of American families, only 44% are certain they could come up with $2,000 if an unexpected need arose within the next month.
• Among workers over the age of 60, the median financial wealth is only $1,500 for those who have not planned.

The moral of this story is obvious: Americans are not preparing themselves for their financial futures. The long-term implications are serious and not to be ignored. For fear of sounding like a broken record, the earlier you start saving for your retirement the better off you will be. But regardless of your age it’s never too late to start saving. Lastly, the NFCS study found that “…Higher financial literacy correlates strongly with whether individuals plan for retirement and have rainy day funds.” Educate yourselves and enjoy your golden years.