Roughly half of Americans are saving 5% or less of their incomes, including 18% that are not saving anything, according to a survey from Bankrate. Only about a quarter of people are saving more than 10% of their earnings.
So how much should you be saving? Bankrate recommends 15%.
“Between emergency savings and the ever-increasing burden of retirement savings that is on the individual, the goal should be 15% of your income,” said Greg McBride, the personal finance website’s chief financial analyst.
Currently, one in seven people are saving more than 15%, the report showed.
“For a lot of people, it won’t happen overnight. It’s going to take some time, but it’s doable, as the middle class is showing.”
Those in the middle class are proving to be the super savers with 35% of people with an annual income of $50,000-$74,999 saving more than 10% of their earnings.