American Seniors in Almost All States Have Inadequate Incomes
Senior citizens in 47 states and the District of Columbia have inadequate incomes, a new study from Bankrate finds.
These seniors simply aren’t replacing enough of their pre-retirement incomes.
Just how inadequate? Bankrate, citing financial experts, said that seniors need at least 70% of the income they earned in their working years to be comfortable in retirement.
However, only seniors in Hawaii, Alaska and South Carolina are making that much.
Nationally, the median income for those who are 65 and older is just 60% of the median income among 45 to 64 year-olds.
“These numbers help illustrate how underprepared many Americans are for retirement,” said Greg McBride, CFA, Bankrate.com’s chief financial analyst, in a statement. “It’s especially important for millennials to save aggressively because they face the biggest retirement savings burden of any generation in American history.”
Let this be a warning shot across the bow of anyone who isn’t saving at least 5% of their income for retirement.
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