Study: More Americans Will Work Through Retirement
A majority of Americans expect to work through their retirement years because their retirement accounts are severely underfunded, according to a survey published Wednesday by Wells Fargo.
Three in four Americans have less than seven percent of their desired retirement nest egg funded, the bank's Retirement Fitness Survey showed.
Middle-class Americans said they expect to need $300,000 to fund their retirements, but on average, these people have only saved $20,000, according to the survey.
The survey defined "middle class" as those aged 30 to 69 with $40,000 to $100,000 in household income or $25,000 to $100,000 in investable assets and those aged 25 to 29 with income or investable assets of $25,000 to $100,000.
"Too many Americans have their heads in the sand in the face of obvious savings deficits," said Laurie Nordquist, director of Wells Fargo Institutional Retirement Trust. "Barring a miracle, a winning lottery ticket or a big inheritance, they're going to be forced to dramatically cut back their lifestyles after retirement."
Even Americans approaching retirement age are not well-funded. Respondents aged 50 to 59 have saved an average of only $29,000 for retirement, the survey found.
As a result, 72 percent of respondents between the ages of 25 and 69 believe they will have to work during retirement just to make ends meet.
The survey also found that saving habits differ by geography.
More than 23 percent of "easterners" said their inability to meet day-to-day expenses would impact their plans to retire, whereas 20 percent of respondents in the Midwest, 15 percent in the South and 12 percent in the West said the same thing.