Make it your homepage |   E-mail: Subscribe Unsubscribe

British Council announces global celebration of Shakespeare

Thursday, April 24, 2014
News Making Money

Middle Class Americans Face a Retirement Shutdown

24/10/2013 12:21 (181 Day 14:27 minutes ago)



The FINANCIAL -- As U.S. lawmakers engage in an ongoing fight over how and when to pay the country’s debts, more than half the middle class (59%) are very clear that their top day-to-day financial concern is “paying the monthly bills,” an increase from 52% in 2012, according to Wells Fargo, one of the world's leading custom market research firms.

Saving for retirement ranks a distant second place, with 13% calling it a “priority,” as four in ten middle class Americans (42%) say saving and paying the bills is “not possible.” As a result, 48% are not confident they will be able to save enough for a comfortable retirement, and 34% of the middle class say they will work until they are “at least 80” because they will not have saved enough for retirement, up from 25% in 2011 and 30% in 2012. These results come from the latest annual Wells Fargo (NYSE: WFC) Middle Class Retirement study, a telephone survey conducted by Harris Interactive of 1,000 middle class Americans between the ages of 25 and 75 and interviewed July 24 to August 27, 2013.

About half (52%) of the middle class between the ages of 25 and 75 say they are “confident” they will have enough saved for their retirement, according to the 2013 study. However, less than a third (29%) say they have a written plan for their retirement. For those who have a written plan, 70% describe themselves as “confident” in their future retirement versus 44% who do not have a plan.
Ninety-one percent of the middle class who have a plan for their finances in retirement agree that they have the “will-power” to save for retirement versus 75% of those who do not have a plan.
Thirty-one percent of Americans in prime retirement saving years – 40 to 59 – say they have a plan, versus 69% who do not. Both groups in this age range say they will need a median nest egg of $200,000 for their retirement. However, people who attest to having a written plan say they have saved a median of $63,000, or 32% of their goal. Those without a written plan have only saved a median of $20,000, or 10% of their goal.

A plurality of middle class Americans without a written plan for retirement (45%) attribute having “so few financial assets” as the reason they don’t have a plan for retirement. According to a June 2013 U.S. Census report, the median household income is $52,100.

A quarter of middle class Americans who earn between $25,000 and $50,000 have a written plan for retirement. The proportion that has a plan rises slightly to 29% for those with household income between $50,000 and $100,000.

However, having more income does not necessarily translate to having saved more as a percentage of their overall retirement goal. The middle class has saved between 5% and 8% of their overall savings goal, regardless of their income, according to Wells Fargo.

A third of all middle class Americans say Social Security will be their “primary” source of income in retirement. Nearly half (48%) of those making less than $50,000 say Social Security is going to be their “primary source” of income in retirement, versus 25% who make more than $50,000.

Forty percent of the middle class say “a large unexpected healthcare expense” is their greatest fear in retirement; however, a similar level, 37% of the middle class, say the “loss or diminishment of Social Security” is their greatest financial fear. This fear is heightened for women, almost half of whom (46%) say their number one financial fear in retirement is a loss or diminishment of Social Security, according to Wells Fargo.

The apprehension about the market is stronger for those age 25 to 29, with 56% expressing fear of losing their nest egg. When asked if given $5,000 for retirement where they would invest, 58% of those age 25 to 29 say they would invest in a savings account/CD. Confidence in the stock market differs by gender. In contrast to past research, women seem to be less fearful than men: 46% of middle class women express fear of losing their nest egg in the stock market versus 58% of middle class men.



Make Your Comment

Add NewSearchRSS
Only registered users and facebook social network members can write comments!

This text is replaced by the Flash movie.
This text is replaced by the Flash movie.
“The former Yugoslav Republic of Macedonia”: presidential election and early parliamentary elections

23/04/2014 16:38 (10:10 minutes ago)

The FINANCIAL -- A 14-member delegation of the Parliamentary Assembly of the Council of Europe (PACE), led by Stefan Schennach (Austria, SOC), will travel to “the former Yugoslav Republic of Macedonia” from 25 to 28 April to observe the conduct of the presidential election (2nd round) and the early parliamentary elections, alongside observers from the OSCE’s Parliamentary Assembly and Office for Democratic Institutions and Human Rights (ODIHR), according to PACE.



Zurich identifies seven cyber risks that threaten systemic shock

23/04/2014 17:00 (09:48 minutes ago)

The FINANCIAL -- The recently published Zurich Cyber Risk Report, created in collaboration with the international think tank Atlantic Council, argues that cyber-risk management professionals need to look beyond their internal information technology safeguards to interconnected risks which can build up relating to counterparties, outsourced suppliers, supply chains, disruptive technologies, upstream infrastructure and external shocks, according to Zurich Insurance Company.


Developed by Aleksandre Chiabrishvili

Design built by Creo Group