A new study conducted by Well Fargo found that many middle-class Americans' financial commitments are preventing them from saving for retirement.
In its annual Middle Class Retirement study, the San Francisco-based bank found that 59 percent of the survey respondents ranked paying their monthly bills as their top financial concern. This is an increase from 52 percent in 2012. Many who answered the survey said that their minimum financial requirements have played a factor in not saving for retirement.
Saving for retirement was ranked at a distant second with only 13 percent of the respondents ranking it as a top priority. The survey went on to report that 42 percent of Americans do not believe they can both save for retirement and pay their minimum financial commitments. This fear of making minimum bill payments has pushed many consumers to work well into their 60s. The survey reiterated this point, with 34 percent of the responders saying they will work until the age of 80.
The mindset of this age group is creating widespread economic ramifications. The survey said that 45 percent of the respondents do not believe investing in the stock market is a good idea. Laurie Nordquist, head of Wells Fargo Institutional Retirement and Trust, said this way of thinking is counterproductive and will hurt the economy.
"There is a striking amount of fear about the stock market among all investors. The middle class just isn't making the link between investing and the potential growth of their savings, but on top of this fear is apathy - there is no interest in learning more about investing. Fear and apathy are a bad combination, whereas knowledge about saving and investing is empowering. We've got to move people to this mindset," she said.
Many people believe they cannot save for retirement.
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