Avoid Retirement Poverty

March 23, 2010 — -- A whole lot of Americans could be looking at a choice between working into their old age and living a life of poverty in retirement.

That's about the only conclusion I can draw from a recent survey that indicates more than half of all American workers have saved little or nothing for retirement.

A survey released earlier this month by the Employee Benefit Research Institute found that 54 percent of American workers have saved less than $25,000 for retirement, with half of those people saying they had less than $1,000 saved for retirement.

Yet, nearly a third of those who say they have virtually nothing set aside say they are "very" or "somewhat" confident that they will have enough money for a comfortable retirement.

I say, think again. Because when it comes to retirement, you're on your own.

The traditional pension plan has all but disappeared for non-government workers, and Social Security isn't going to be enough even under best case scenarios.

You're on your own. And that's why that 54 percent of American workers with less than $25,000 needs to get going when it comes to saving for retirement.

Now, I already know what many readers will say in response -- it can't be done, it's impossible, the economy's terrible, there aren't enough jobs, I don't make enough, I can't pay my bills, there's nothing left at the end of the month.

And in most cases, I say, you're wrong. The only group I buy it from is the unemployed. Saving money when you don't have a paycheck is impossible.

Otherwise, if you have a job, you can save for retirement. It's just a question of how you do it.

Here are five steps for anyone in that 54 percent of workers with little, if anything, saved: