More than half of Americans think they're behind on retirement savings, and another 20% have no idea where they stand
- A whopping 70% of Americans say they're either behind on retirement savings or don't know where they stand, according to a new Bankrate survey.
- People who earn less than $80,000 a year were the most likely to report feeling behind on their savings goals.
- Recent data show that Americans in their 40s and 50s, the cohort known as Generation X, are struggling to save. Only 36% of Gen Xers actively contribute to a retirement account.
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Americans are largely behind on retirement savings, and they know it.
According to a new Bankrate survey of nearly 2,700 adults, over half of the respondents (52%) said they're not where they should be with their retirement savings, while 16% said they're right on track, and 11% said they're ahead.
What's more, 20% of respondents said they have no idea where they fall when it comes to retirement savings progress. The survey found that income plays a big role. People who earn less than $80,000 a year were most likely to say they were falling behind on retirement savings, while people who earn more were most likely to say they're ahead. The high-earners were the least likely group to say they didn't know where they stood.
Recent data shows Gen X is struggling most with retirement prep. A previous survey from Insider and Morning Consult found that exactly half of Gen Xers don't have a retirement savings account. That's only slightly less than the share of millennials who don't have one, even though there's a multi-decade age difference.
While the Silent Generation and early Baby Boomers have relied on a combination of pension benefits and Social Security to make up their retirement income, Gen X is the first generation that has largely had to assume the responsibility of building up their own nest egg. All told, the Insider and Morning Consult survey found only 36% of Gen Xers are actively saving in a retirement account, while 13% have a dormant retirement account.
Despite record student-loan debt, stagnant wages, and higher than ever housing costs, millennials seem to be doing OK when it comes to retirement savings - or at least, better than the generation before them. A recent Wells Fargo survey found that the same share of millennials and Gen Xers - 14% - have between $25,000 and $100,000 saved in personal retirement accounts.
"Getting your retirement savings on track begins by fully utilizing your tax-advantaged retirement savings options such as a workplace 401(k) and supplementing that with an IRA," said Greg McBride, Bankrate's chief financial analyst.
"Aim to save at least 10% - and ideally 15% - of your income specifically for retirement," McBride said. "The best time to start is 'today,' and the worst time to start is 'someday.'"
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