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 retirement.
“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.