Never had a retirement account? You’re not alone – 36% of working Americans said they’ve never had a retirement account, such as a 401(k) plan or an IRA, according to a new Bankrate survey.
Gen Z and low-income households were more likely to fall into this group. That includes about half of workers with annual incomes below $50,000, according to the survey. Bankrate’s survey included interviews with 2,225 American adults.
More than half of all workers said they felt they were behind on their retirement savings, and just 21% said they were on track. Another 16% said they were unsure of their position and 11% thought they were ahead. These are self-reported survey results, which means people are reporting what they believe to be true about their retirement security, but that’s not necessarily accurate – sometimes individuals can underestimate how much they have saved, or worse, they may overestimate and face a potential shortfall in retirement.
Older generations were more likely than their younger counterparts to feel behind.
See: Are your retirement savings insufficient? Here’s what to do
But the survey also had promising findings. More than six in 10 workers said they were saving as much or more than before the coronavirus crisis, although 14% said they were saving less and 23% said they were not contributing as much before or now. Reasons for saving less included loss of income and additional expenses and debt.
The COVID-19 pandemic has illustrated the importance of saving for the future, after pushing more Americans to retire earlier than expected and, in some cases, dip into their savings accounts. saving.
Although not everyone has access to an employer-sponsored retirement account, such as a 401(k) or 403(b), earning workers (or their nonworking spouses ) can contribute to an IRA.