MAY 2012 |
Lifetime Income Scores II: Our latest assessment of retirement preparedness in the United States
A widening gap in retirement preparedness
Results rom our initial survey showed that the dierencein preparedness between the lowest-income earnersand the top-income earners was relatively small(61% versus 80%). But our latest retirement surveyprovides evidence o a widening gap between lower-and higher-income households, with scores or theormer generally declining and scores or the lattergenerally rising
.The median LIS or 2012 was 65, but median scoreswere somewhat lower (60) or household incomesbelow $100,000, which constitute the majority o U.S.households. The most recently released data romthe U.S. Census Bureau shows that in 2010 the realmedian household income was $49,445, and only20.5% o households earned incomes above $100,000.
Counting Social Security, the dierence in scoresbetween the lowest-income earners and the top-incomeearners widened signicantly in the past year
,growing rom 19 to 34. While saving can play a signicantrole in retirement preparedness regardless o income,the retirement gap between lower- and higher-incomeworkers has clearly grown through the recent period oeconomic uncertainty.
1 “Income, Poverty, and Health Insurance Coveragein the United States: 2010” U.S. Census Bureau, Sept. 2010,http://www.census.gov/prod/2010pubs/p60-238.pd.
Figure 1. Scores improved or the highest-income households
L i f e t i m e I n c o m e S c o r e
20122011$100K+ (26%)< $100K (74%)$175K+ (7%)$100K to < $175K
(19%)$50K to < $100K(41%)< $50K (33%)Total65%64%58%61%63%64%75%72%92%80%60%62%80%74%
Percentages next to categories indicate incidence among respondents.