Tags: spend | wealthy | save | paycheck

SunTrust Survey: The Wealthy Too Are Living Paycheck to Paycheck

By    |   Friday, 17 April 2015 06:20 AM

It should be pretty easy to save money if you're making $75,000 or more a year, right? Actually, not so fast.

A SunTrust survey conducted by Harris Poll of 519 adults in that category shows that almost one-third live paycheck-to-paycheck at least sometimes.

And what's the problem? A hefty 44 percent say discretionary spending, such as dining out and entertainment, makes them save less than they should each month. For millennials (those born in the early 1980s and after) that number soars to 71 percent.

It sounds like someone needs a little more financial discipline, right? Indeed, one-third of the group says a lack of such fortitude at least sometimes holds them back from their financial goals.

It's no wonder, then, that only 37 percent of the respondents aged 45 to 54 think they're saving enough for a comfortable retirement. While that number rises to 53 percent for those aged 35 to 44, you have to wonder whether that 53 percent is engaged in over-optimistic thinking.

Elsewhere on the retirement front, here's yet another study showing we aren't minding our Ps and Qs when it comes to retirement planning.

A survey of Americans 55 or older by Financial Engines, an investment advisory firm, found that 68 percent admit to procrastinating on retirement planning.

Respondents on average said 25 is the right age to start retirement planning. But on average they waited another 10 years beyond that.

The study listed the top five reasons respondents cited for procrastination.
  • Stress (mentioned by 50 percent of respondents)
  • Higher priorities (40 percent)
  • Worried about being taken advantage of (24 percent)
  • Unsure how to go about it (23 percent)
  • Too difficult (20 percent)
And how much will procrastination cost you?

Under a typical scenario, "savers starting at age 35 would have to save 11.69 percent of their salary to catch up to a 25 year old saving 6 percent of salary," the study states. "A saver starting at age 40 would need to save 16.44 percent to have the same amount at age 65."

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It should be pretty easy to save money if you're making $75,000 or more a year, right? Actually, not so fast.
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Friday, 17 April 2015 06:20 AM
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