LIMRA: most middle-income workers not saving enough for retirement

One in four workers ages 18-34 reported not saving for retirement. While more workers age 35-54 report saving some percentage of their income for retirement, almost one in five are not saving for retirement, the report adds. Yet 80 percent of the survey respondents say they need 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-plus) and women, who represent the highest level of non-savers, are most likely to think they need to save at least 15 percent or more. 

“While current economic conditions are clearly challenging Americans’ ability to save for retirement, savings habits have not changed significantly over the past two decades,” says Matthew Drinkwater, associate managing director of LIMRA’s retirement research. “Over this period, employer-sponsored retirement plans have continued to transition from defined benefit plans managed by employers to defined contribution plans where workers are fully responsible for their retirement funds.  

“Our research indicates that workers still need more education and guidance to help them make the right decisions to ensure they have sufficient savings for retirement,” he adds.