Making enough money to ensure that a financial strategy is intact is important for many individuals, but some may be experiencing roadblocks to accomplishing their goal.
Those who are between the ages of 35 and 44 are experiencing the most significant growth in the income gap out of any Americans, according to a report from Bankrate.com. From 1992 to 2012, this figure rose more than 20 percent, while the average for other age groups rose by just 10 percent. Those between the ages of 45 and 54 had an increase of 18 percent during this period.
This can become problematic for a number of reasons. The report noted that there is some reason to think that this period in a person’s life can be the most vital for trying to secure a financial future. There certainly is still time to save enough money for retirement, but there are multiple issues related to savings during this period. This includes not only owning a home, but affording having children and helping out parents who are elderly.
Retirement achievement a struggle for some
Achieving a comfortable retirement is valued by many Americans, but there may be some who are unable to reach this point manageably.
Nearly 60 percent of Americans noted that paying their bills each month is their biggest worry financially, according to a survey conducted by Harris Interactive for Wells Fargo. Only 13 percent of those polled noted that saving for retirement was their biggest concern. This was good enough for the second-most cited answer, but still far behind paying bills.
Only 52 percent of those between 25 and 75 years old noted they think they have enough money to retire, the report noted. Meanwhile, just 29 percent have a strategy to retire written down.
“This data so clearly shows what a difference a retirement plan makes, in that people who have a plan have saved three times what those without a plan have saved,” said Laurie Nordquist, head of institutional retirement and trust at Wells Fargo. “A plan instills confidence and gives people the discipline to stick with their objectives and reach their financial goals.”
More than 30 percent of those who are in what are considered “prime savings years” revealed that they have a plan, the report added. However, 69 percent noted they do not.