Even People with High Incomes Are Not Saving Enough for Retirement
April 17, 2019
Saving can be tough. For low and middle-income earners, after paying monthly expenses, there’s often just not much left to save for retirement. Even top earners are not saving enough, according to a new study.
Economists at the Schwartz Center for Economic Policy Analysis tracked the retirement savings of people ages 51 to 56, and their findings show that even the most well off Americans may not be prepared for retirement. Of the top earners in the study, those who make more than $80,000 per year, only about 30 percent have more than $200,000 saved for retirement. Retirement planning experts suggest a goal of $1 million in savings. Only 3 percent of top earners have this much saved.
While the study also showed that the situation is much worse for those with low incomes, it shows that income alone does not determine a person’s readiness for retirement.