What Retirement? More Americans Say They will Work Until They Can't

What Retirement? More Americans Say They will Work Until They Can'tSaving for retirement ranks a distant second place after paying the monthly bills, according to a new survey of middle-class Americans that finds a growing percentage expecting to work into their 80s or until sickness or death stops them.
The Wells Fargo survey found that four in ten middle class Americans (42 percent) say saving for retirement while paying bills is “not possible.”
As a result, 48 percent are not confident they will be able to save enough for a comfortable retirement, and 34 percent of the middle class say they will work until they are “at least 80.” That’s up from 25 percent in 2011 and 30 percent in 2012.
The results are part of the Wells Fargo Middle Class Retirement study, a telephone survey done by Harris Interactive of 1,000 middle class Americans between the ages of 25 and 75. They were interviewed July 24 to August 27, 2013.
A majority of respondents (45 percent) say they do not have a written plan for retirement because they have “so few financial assets.” According to a June 2013 U.S. Census report, the median household income is $52,100.
A quarter of middle-class Americans who earn between $25,000 and $50,000 have a written plan for retirement. The proportion that has a plan rises slightly to 29 percent for those with household income between $50,000 and $100,000.
However, having more income does not necessarily translate to having saved more as a percentage of their overall retirement goal. The middle class has saved between 5 percent and 8 percent of their overall savings goal, regardless of their income.

Leave a Reply

Your email address will not be published. Required fields are marked *