The middle-class, in case we didn’t already know, is in trouble. But it is suffering particularly when it comes to retirement saving, which it Just. Isn’t. Doing.
The fifth annual Wells Fargo Retirement Study found that 34 percent of middle-class Americans aren’t putting money away at all — whether it’s for a 401(k), an IRA or some other retirement vehicle.
Among those ages 50-59, the number is worse: 41 percent aren’t saving for retirement. Almost a third (31 percent) say they won’t have enough money to “survive” on in retirement, and when it comes to folks in their 50s, that percentage rises to nearly half (48 percent).
Depressed yet? Wait. If you thought saving for retirement was a challenge, you’re far from alone, with 68 percent of respondents saying that it’s “harder than I anticipated.”
More than half (55 percent) say they’re going to save “later” to “make up for not saving now.”
Among those in the prime age range for saving, 30-49, 59 percent are banking on that procrastination plan, while 27 percent just aren’t contributing to a retirement plan or account.
The irony is that not only do 72 percent say they should have started saving earlier for retirement (that’s up from 65 percent in 2013), 61 percent admit that they’re not sacrificing “a lot” to save for retirement. (Thirty-eight percent say they are.) And when asked if they would cut expenses “tomorrow” to save for retirement, only half said they would.
Where would they find the money to save?