NEW YORK (CNNMoney.com) -- Are you prepared to live on $190 a month when you retire?
For most Americans in their 50s, that's all the personal savings they'll have to look forward to during retirement, according to Wells Fargo's annual retirement survey.
The survey, which polled nearly 2,000 middle-class Americans ranging from 20 to 60 years old, found that Americans aren't saving enough, they are underestimating the amount of money they will need in retirement, and they are more likely to end up working through retirement.
While most Americans predict they will need a nest egg of $300,000 to live on for 19 years in retirement, the average savings of 50-somethings is only $29,000, which comes out to an income of $190 a month over 20 years assuming a 5% rate of return.
"$190 a month is not going to cut it," said Laurie Nordquist, co-head of Wells Fargo Institutional Retirement and Trust. "This reinforces the huge gap in terms of what people are going to need and what people have. They have a little time to add to that nest egg, but it's a huge shortfall to recover."
Even with Social Security or other sources of income, most people are not going to be able to cover basic needs with such a small amount of money, she added.
While you would think the recession is to blame for the lack of savings -- making it harder for people to tuck away money in retirement plans -- Wells Fargo found that people saved roughly the same amount during the recession as they did before.
According to the survey, only 33% of Americans have a detailed written retirement plan and 37% don't know how much the will need in retirement or how long they will be able to live on what they have saved.
"The last two years have been a wake-up call on some things on the financial front, but that wake-up call hasn't leaked into the retirement front," said Nordquist. "We're hoping that people in their 50s will realize that they need to take the time they have left to start making up that shortfall and creating a plan."
Unless that wake-up call comes, you could very easily find yourself working through retirement -- which more and more Americans are doing.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.43%||3.40%|
|15 yr fixed||2.70%||2.67%|
|30 yr refi||3.45%||3.43%|
|15 yr refi||2.71%||2.71%|
Today's featured rates:
Southwest pilots have been negotiating pay raises and improved contract terms with the airline for more than four years. Now, there's a sign the gridlock is ending. The union said Monday they've reached an 'agreement in principle.' More
Nearly 10,000 current and former Chipotle workers have joined a class action lawsuit alleging the company forced them to work 'off the clock' without pay. More
Chicago will begin tracking air quality, weather and road data to better inform government decisions. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Following an order from the Department of Education to stop admitting students on federal financial aid, the for-profit technical school has stopped enrolling new students. More