Lower-income workers face a big challenge for retirement. What’s keeping them from saving

Having enough cash to cover the bills must be job one when it comes to retirement savings.

Yet, the retirement gap − the risk of not having enough money throughout retirement to cover typical spending − is widest among late baby boomers in their early to mid-60s, who have low-paid to middle-income jobs, according to new retirement readiness research.

The challenge? This group − who likely could be living paycheck to paycheck now − typically will need nearly as much money to cover their bills in retirement as they do while they’re working and collecting a paycheck. But their Social Security checks and other savings might only enable this group of lower-paid workers to cover less than two-thirds of their pre-retirement spending, according to Fiona Greig, global head of investor research and policy at Vanguard.

Susan Tompor | USA TODAY

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