ROCHESTER, N.Y.—Many middle-class Americans won’t be ready for retirement, according to a new survey that indicates this consumer segment is currently saving too little, or nothing at all, for the golden years.
A survey conducted by Harris Poll for Wells Fargo revealed that middle-class consumers have a median of $20,000 saved for retirement, far short of the $250,000 they think they'll need during that time of their lives.
The survey of 1,001 adults, ages 25 to 75, with a median household income of $63,000, also uncovered that 34% of working middle-class adults aren't contributing anything to a 401(k), IRA or other retirement savings plan.
Most who are saving are not putting away enough, with $125 a month the median savings for those socking money away. Sixty-one percent of respondents said they are not sacrificing a lot to save for retirement. However, 38% are sacrificing to tuck away money, and 55% say they plan to save later for retirement in order to make up for not doing enough now.
Other survey findings:
• 31% of employed middle-class adults say they won't have enough money to survive in retirement
• 70% have a 401(k) or equivalent plan available to them through their employer, and a majority of them (93%) are currently contributing to their plans
• 50% of middle-class adults in their 50s say they will work until they are at least 80 years old because they will not have enough saved for retirement
This story first appeared in USA Today.