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Survey: 77 Percent of Middle-Income Households Actively Save for Retirement

Survey: 77 Percent of Middle-Income Households Actively Save for Retirement

A new survey published by global financial services firm Principal Financial Group reveals strong retirement savings habits among middle-income households earning between $50,000-$99,999 annually.

By the numbers: Seventy-seven percent of these households are saving for retirement at an average rate of 7.8 percent of their income before employer contributions, with 40 percent expecting better retirement outcomes than initially envisioned.

Yes, but: While the survey results illustrate positive momentum for retirement savings, it also found one-third of middle-income households have made a withdrawal from their retirement accounts to:

  1. Address large purchases that were not optional such as urgent home or car repairs (38 percent)
  2. Cover lost income due to the loss of their job or their spouse’s/partner’s job (30 percent)
  3. Repay medical debt (18 percent)
  4. Pay for expenses related to an adult child or parent (18 percent)

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.