Fox Business | 2 hours ago | Finance
American workers are significantly trailing in terms of retirement readiness, according to financial benchmarks provided by Fidelity. Overall preparedness is considerably impacted by disparities associated with educational background and race. A large proportion of the working population in the U.S. is ill-prepared for their post-career life, failing to match the standards recommended by the investment firm.
Fidelity suggests that by age 67, savers should possess ten times their income stashed for retirement. However, a significant portion of the American workforce appears to fall short of these predetermined retirement savings markers. These gaps in saving are intensely magnified by differences in educational attainment and racial lines.
Workers with advanced degrees seem to be better prepared for retirement compared to their less-educated counterparts. This reflects the generally higher earnings and saving capabilities that come with higher education. Similarly, racial disparities are also evident, with white employees typically having a more secure retirement due to higher incomes and wealth accumulation.
Therefore, it is important to address the divergences in retirement savings, which are largely tied to education and race in the U.S. Increasing awareness about the importance of saving for retirement, and creating equitable access to high-quality education and job opportunities could assist in closing these gaps. Building more financially inclusive systems can also play a key role in enhancing overall retirement preparedness across various American demographics.