We all know that low- and middle-income workers generally don’t have enough saved for retirement.
“We always knew the bottom and the top were different and that they were growing apart,” said Teresa Ghilarducci, an economics professor at the New School for Social Research and a co-author of the report. “But we were surprised that our retirement system creates winners and losers even within the same class of workers.”
The researchers tracked the retirement savings of people between the ages of 51 and 56, using the Health and Retirement Study and IRS tax data. The project took them two years.
The authors found a great range in preparedness levels among people in the top-fifth of the earnings distribution, suggesting that even many prosperous Americans could struggle financially as they climb up the decades in age.