Millions of boomers are approaching retirement with no savings, survey finds

• Millions of older Americans may have a net-worth problem.
• A recent study found that 21% of those aged 59 and above have a net worth of $0 or less.

Millions of Americans may have a net-worth problem as they head towards retirement, a recent study by personal-finance company, Credit Karma, has found.

The study found that 21% of those aged 59 and above said their personal net worth was $0 or in the negative. A 2022 Gallup survey found that the average retirement age in the US was 61, leaving these workers with little time to save.

Across all generations, the survey of 1,006 US adults found that 31% said their net worth was $0 or in the negative. The problem of a lack of savings is unsurprisingly higher in the younger generations, with 41% of Gen Zers and 38% of millennials reporting their net worth as $0 or in the negative.

Courtney Alev, a consumer financial advocate at Credit Karma, said it was a common misconception that the term "net worth" was only reserved for high-earners. He said: "Just like your credit score, net worth is an important number to track consistently as you begin to pay down debt, save money for retirement and achieve major financial milestones."

The survey found that nearly one-in-five respondents aged 59 or above said they didn't have a retirement account, the highest number of any of the generations surveyed.

Another 5% of those surveyed in the age bracket said they couldn't afford to contribute to their retirement account, while 17% say they've decreased their contributions because of inflation.

Growing inflation in the US is squeezing some seniors out of retirement. Retirees are reentering the workforce in growing numbers, with many taking service industry jobs, a report from USA Today said.