Looking toward the future can be important for many people, especially if financial security is a concern. Having a financial strategy for the present may be great, but people of any age may be risking a difficult future without seeking to make their future more comfortable.
Nearly 60 percent of middle class Americans feel that their main money priority is to cover their bills now, according to a report from Wells Fargo. This is higher than the 52 percent that noted this in 2012. The second-largest concern was to save for retirement, but this was significantly lower in priority, with only 13 percent noting this.
Saving money is an issue for many in this group, as more than 40 percent said they cannot pay their bills and save for later life, the report explained. Close to half of those polled explained they will not be able to collect enough money in their savings for a retirement that they would like, while one-third expect to work until they turn 80 years old, at least. That level was markedly higher than the 25 percent recorded two years ago.
“We do this survey every year and for the past three years, the struggle to pay bills is a growing concern and the prospect of saving for retirement looks dim, particularly for those in their prime saving years,” said Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust. “We’d like to try to help people find the silver lining and create a path to retirement savings. Having a plan and saving not only creates more hopefulness, but it produces results that can grow and lead to a solid retirement.”
Separate report confirms similar result
Even with the financial worries attached to retiring comfortably, many more people may be working later by choice. A report from the Associated Press and NORC Center for Public Affairs Research noted that a number of Americans explained they are more attracted by working longer, as it can help them put off some of their major savings channels.
This may be due to more people living longer, the report explained. With healthier, longer lives, many individuals may be more comfortable phasing themselves out of the workforce at a later date. By 2030, there may be nearly one-fifth of the population in retirement age, which is much higher than the 13 percent recorded in 2010.