People at all income levels are guilty of not saving enough for retirement, but it may not be entirely their fault. Income shocks — defined as an annual earnings drop of more than 10 percent — are so common that 96 percent of working Americans experience four or more of them by the time they reach age 70, according to research by the nonprofit National Endowment for Financial Education in Denver.
“You can do everything right, but life is going to happen,” said Bill Hensley, senior director of education at the endowment. “You may lose your job or you might have to take time off from work to care for a loved one. Things will happen that are beyond your control.”
The National Endowment for Financial Education study, conducted by researchers Teresa Ghilarducci and Anthony Webb, found that almost no one is safe from periods of lost income due to a health crisis, job loss or other life transitions during their working years.
— Pittsburgh Post-Gazette