NORTH PALM BEACH, Fla.—The middle class are America’s best savers, a new study reveals.
According to a survey that accompanied Bankrate.com's March Financial Security Index, one quarter of middle-class households—those earning between $50,000 and $75,000 annually—set aside more than 15% of their income.
That money is rerouted from their daily expenses to fund long-term goals such as a retirement investment plan or an emergency savings account, Bankrate.com reported.
Comparatively, 8% of lower wage earners contributed this much. And only 17% of the highest earners in the survey—households making $75,000 and above—elected to put the same amount of their salaries away for a rainy day.
"Middle-class Americans (have) to do the saving, because nobody is going to do it for them," said Greg McBride, Bankrate.com's chief financial analyst. "They don't have the six-figure income to fall back on" for expenses, including household emergencies, long-term healthcare, children's education or their own retirement.
In contrast, people between 18 and 29 years old—the youngest group in the survey—were the most likely to save relatively little: 37% said they save 5% or less. Another 18% said they save nothing at all.
"They don't see a correlation between where they are now and where they will be," independent budgeting expert Tiffany Aliche told BankRate.com.
Bankrate.com's latest survey was conducted March 5-8 by Princeton Survey Research Associates International and included answers from 1,000 adults in the continental U.S. The survey also found:
- Low-income consumers are, perhaps unsurprisingly, the worst at putting money away. Thirty-one percent of households making under $30,000 annually are saving none of the money they bring in, the highest percentage, by far, among income brackets.
- Retirees (ages 65 and over) are all over the map when it comes to saving. They're the demographic most likely to save none of their annual income, while also being most apt to put away more than 15% of it, Bankrate.com stated.
- Thirty percent of college graduates are saving 6% to 10% of their annual income, compared with 16% of those who never attended college.
Overall, the results represent a bit of a mixed bag regarding the Americans' overall financial preparedness.
"Some people are doing a really great job at saving," McBride said. "A lot of people are not."