While most people look forward to the day when they can begin a life of leisure and live off of their retirement savings, a sizeable proportion of middle-class Americans say that this event will probably never happen for them. A recent study conducted by Wells Fargo has found that 34 percent of individuals in this income bracket think that they will work until at least age 80. More alarmingly, 37 percent of those surveyed said that they would never retire and would work until they are too sick or die.
Why is this the case? According to the survey, saving for retirement is not their top financial concern. Fifty-nine percent of those questioned said that paying bills was more important than saving and 42 percent told Wells Fargo that it was not possible to pay everyday expenses and put money away for the future.
In addition to a shortage of funds, another issue holding the middle class back from successfully saving for retirement is a lack of information about where they should put their money. When asked if given $5,000 for retirement, what they would do with the money, over half said that it would go into a savings account. Only 24 percent thought that investing in the stock market would be a viable option.
In a press release, Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust, said that middle-class Americans are making the mistake of letting fears about the stock market hinder them from educating themselves about successful investing strategies.
"The middle class just isn't making the link between being invested and the potential growth of their savings, but on top of this fear is apathy," Nordquist said. "There is no interest in learning more about investing. Fear and apathy are a bad combination, whereas knowledge about saving and investing is empowering. We've got to move people to this mindset."
With our current economic climate, it's understandable that someone may be wary of investing in the stock market. By using portfolio protection services from SmartStops, however, you can identify potential risk factors and protect your nest egg.
Categories: Stock News