A third of all middle class Americans are not saving enough for retirement. The disconcerting report comes from a Wells Fargo Retirement Study. In fact, the survey found that most middle class earners have only saved a median of $20,000 for retirement.
The figure is gloomy as middle-class retirees across all age groups will require an average retirement savings of $250,000. Most respondents, even those already in their 50's, said that saving is difficult and they hope to be able to save more in the future. The American middle-class currently save $125 on average per month.
Unfortunately, hope is not a wise savings and investment plan and putting away money for retirement can actually get more difficult as one grows older. Even as one is able to further in their career, expenses can get bigger with education, childcare, and even costs for aging parents to take into consideration.
The earlier one can start putting away money into a 401(k)s, IRAs or other retirement savings, the easier it will be to form the habit.
Joe Ready, the director of Institutional Retirement and Trust, says that saving for retirement should not be put on the back burner.
"Saving for retirement isn't easy. It requires sacrifice, and it's not something people can push off and hope to achieve later in life. If people in their 20s, 30s or 40s aren't saving today, they are losing the benefit of time compounding the value of their money. That growth can't be made up later, so people have to commit early in life to make savings a regular discipline year after year - it is the only way most people will achieve their financial goals to carry them through retirement," he said.
Financial planning experts agree that hoping you can save up more later in the future will never be able to make up for lost opportunities to start saving for retirement as early as your 20's and 30's. Those who have a written plan for retirement and have actively set up an investment fund for their futures, are in better shape for putting their retirement into their own hands.
