Astonishing, but not Shocking!

Close to half of those who earn from $100,000 to $149,999 a year have less than $1,000 in their savings accounts. Some 18 percent of them have socked away absolutely nothing. This stat appeared in a Bloomberg article written by Polly Mosendz, titled “Make Six Figures? There’s a Decent Chance You’ve Got Almost Nothing in the Bank”.

The study was conducted by financial services website gobankingrates, which studied roughly 7,050 individuals. For those making between $25,000 and $49,999, 72 percent had either nothing or less than $1,000 in savings accounts.

We’ve been screaming that asking individuals to fund and manage their own retirement fund (DC) was bad policy.  This shows just how bad.  Individuals need to be saving roughly 15% of their income annually, if they expect to created a retirement account that will sustain them in retirement.  This data indicates what a pipe dream that is for most, but especially for those making less than the median household income (roughly $54,000).

 

 

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