How Retirement Savings Behavior Is Changing by Income, Age and Race
Introduction Over the last few decades, human life expectancy has increased dramatically around the globe. A person born in 1960 could expect to live up to 53 years of age. Today the average is 72. While the increased life expectancy is good, it is also a double-edged sword for people when it comes to financial planning. Given that humans are living longer, they need to be more prepared for retirement, whether building savings in tax advantage accounts or seeking help from a professional financial advisor to help with investments. However, few start saving up for retirement early, while some don’t even consider it until they face an emergency. Moreover, savings behaviour is changing by income, age and race. Here we break down the saving behaviours. Retirement Saving Behaviour by Income There is a correlation between income and savings. If income increases, also saving increases, and many people open retirement accounts to save. However, in the 80s, finding families who used retire