Middle-Income Americans Saving Less than 5% for Retirement

From Financial Planning:

Two-thirds of middle-income Americans are saving less than 5% of their annual income for retirement with nearly a quarter saving nothing at all …

The research looked at American workers earning $40,000 – $99,999.  More than eight in 10 (85%) are saving less than 10% of their income for retirement, the study found.

The group nearest retirement – those older than 55 – was the largest group of non-savers, with 26% reporting not saving anything at all for retirement.  Workers ages 18 – 34 were doing only marginally better, with one in four not setting anything aside from their paychecks for retirement.  Among workers 35 – 54, 20% were not saving for retirement. …

Most Americans understand that they need to set aside more for retirement.  Eight in 10 said they needed to save more to be on track for retirement, with a quarter of Americans saying they need to save an additional 15 percent or more of their income annually.  Older workers (age 55 ) and women were most likely to think they need to save at least 15% more.

With many retirees living 20 years or more in retirement, this is a troubling statistic.   We are reading more and more stories about people working past the so-called “retirement age” because they can’t afford to quit working.  However, retirement is not always voluntary.  If your old job is eliminated, finding a new job at age 55 or older is difficult.  Physical problems may force people to retire before they are financially secure.  Retirement planning should start the day people join the work force.  But if you have not begun planning and saving already, there is no time like the present.  Call a financial planner and make an appointment.

 

 

 

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