66-Year-Old With No Retirement Savings Buys A Home With Two Other Women To Get By

Maryann O'Connor, a 66-year-old woman in Rhode Island, hoped to be retired by her age, but that wasn't in the cards life dealt her. With no savings, 401(k), or emergency fund, she resorted to selling her home and buying a smaller one with two other women to make ends meet. 

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"It's been a matter of life and death," O'Connor told CBS News. She didn't feel like she had any other options, and she's not alone in having little to no savings for retirement. According to U.S. Census Bureau data, about 50% of Americans aged 55 to 66 lack personal retirement savings. 

After adopting and raising three children as a single mother, O'Connor said she knew she'd be in that group. "I have a ‘live for now' philosophy, I guess," she says. 

However, when asked how that philosophy treats her now, O'Connor said her situation is horrible. "I wish I had started earlier," she said. "But I guess I would now say that they need to start planning as early as they can."

O'Connor isn't alone in her sentiments. A study by Lincoln Financial Group revealed that 62% of retirees wish they could go back in time and change how they prepared for retirement. Most of them wish they had saved more and started saving earlier. 

For now, O'Connor runs a company that plans trips for groups of women. Although she must continue working to afford her expenses, she is able to travel on the trips she plans. 

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O'Connor's financial struggles highlight a broader issue that affects many Americans. An alarming number of people are unprepared for retirement. A survey by the Employee Benefit Research Institute found that 32% of workers have less than $25,000 saved for retirement, and a significant portion have no savings.

Not preparing for retirement can lead to less-than-desirable consequences, like making drastic lifestyle changes, selling your home, or continuing to work well into retirement years. O'Connor's decision to purchase a home with two other women is a creative solution to a common problem. By pooling resources, they reduce expenses and support each other emotionally and financially. 

Many Americans struggle with a lack of retirement savings. Debt, high living costs, and unexpected financial emergencies are common occurrences that derail savings efforts. Financial literacy also plays a significant role. A study by the National Financial Educators Council found that Americans' lack of knowledge about personal finance costs each individual an average of $1,500 annually. This gap in understanding underscores the need for better financial education and resources to help individuals make informed decisions about their futures.

Retirement planning poses its own challenges, but it is a crucial part of financial planning. Consulting a financial advisor can help individuals receive personalized advice and strategies to meet their retirement goals and plan for their best financial future. 

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