Workers Fear Running Out of Money

New research shows that 22 percent of workers say they would rather die than run out of money.  However, 61 percent say they are not sacrificing a lot to save for their golden years. 

The Wells Fargo Middle Class Retirement survey looked at the retirement planning of Americans with household incomes between $25,000 and $100,000 who held investable assets of less than $100,000.  One third contribute nothing to a 401(k) plan or IRA, and half say they have no confidence they will have enough to retire. 

Although middle-class Americans have a median retirement balance of just $20,000, those who have an retirement plan are doing better than those without one. 

Most people do understand the need to save for retirement, yet they do not see it as an urgent goal requiring spending cutbacks.  Still, many individuals have room in their budget to boost their savings rates. 

“Of course, the larger problem is that a sizeable percentage of middle-class Americans are struggling financially and simply don’t [have] enough money to stash away for long-term goals like retirement.  As economic data show, many workers haven’t has a real salary increase for 15 years, while the cost of essentials, such as health care and college tuition, continues to soar.”

See Dan Kadlec, 22% of Workers Would Rather Die Early Than Run Out of Money, Time, Oct. 22, 2014.