November 01, 2012
(65%) of middle-income ($40,000 to $99,999) American workers are saving less
than 5% of their annual income for retirement. ---
A LIMRA study found nearly one-quarter (22%) are saving
nothing at all for retirement. The largest age group that reported not saving
for retirement was 55 and older (26%), while one in four workers ages 18 to 34
reported the same. More workers ages 35 to 54 reported saving some percentage
of their income for retirement but nearly one in five are not saving for
retirement at all.
However, the study suggests most Americans understand they
need to set aside more for retirement. Eighty percent of those surveyed said
they needed to save more to be on track for retirement, with one-quarter saying
they need to save an additional 15% or more of their income
annually. Workers ages 55 and older and women were most likely to think
they need to save at least 15% more.
Nineteen percent of study respondents reported they are
saving less than 3% of their annual income for retirement; 24% are saving 3% to
less than 5%, and 20% are saving 5% to less than 10%. Only 15% of respondents
indicated they are saving 10% or more of their annual income for
“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,” said Matthew Drinkwater, associate
managing director, LIMRA's retirement research.