Young Americans not preparing for retirement

Retirement can have a multitude of meanings depending on the situation, but one constant is that there should be some strategy involved to ensure that the bank account is not empty once the paychecks stop flowing.

This strategy does not have to be complicated, but due to the advantages of compound interest, it is always a smarter move to start saving as early as possible before retiring. Unfortunately, most Americans are not.

According to Time magazine, a full 33 percent of all Americans surveyed had zero money saved for retirement. And 56 percent have less than $10,000 saved for their retirement years. The survey also shows that 13 percent of the population has a savings of $300,000 or more.

The data show that the youngest group surveyed, the millennials (ages 18 to 34), are the least likely to have started a retirement account. In fact, they are 40 percent more likely not to have savings than the Generation Xers that came before them.

U.S. News shares five reasons why millennials might be less likely to start and continue saving for retirement:

* They take jobs without benefits
Young people flock to small business and high-growth startups. While this is great for innovation and entrepreneurship, many of these firms do not offer retirement benefits. More than 40 percent belong to this category.

* They are not eligible for the 401k plan
Even if a business offers it, new employees might not have access to the program due to temporary status or a waiting period. This is especially true for younger workers that find themselves with two part-time jobs and no full-time benefits.

* They fail to sign up
Millennials seem to be less likely than the last generation to sign up for a retirement plan. If the program offers employer contributions, however, over 70 percent will sign up.

* Parenthood, homeownership, and other financial obligations
Once millennials reach the family-starting years, they are forced to balance the needs of now versus the needs of tomorrow. Coming up with a down payment for a house, for instance, could directly compete with that retirement contribution.

* Lower salaries
Just like any other worker, millennials are more likely to participate in a retirement account if they make more money. Only half making less than $25,000 will volunteer to save, but that number spikes to 80 percent for those making over $100,000.