Report: Illinois lags in retirement readiness

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Illinois has the 12th largest gap between the incomes of 45-64 year olds and those of retirees, according to a report on workers’ preparation for retirement.

The study from Bankrate.com found that, while experts believe retirees need 70 percent of their working income to live comfortably, the median annual income of Illinois seniors is about 57 percent of the median annual income of pre-retirement workers.

“If you look at how Illinois compared to the rest of the country, the fact of the matter is that during their working years, residents of this state are doing pretty well with a median household income of $65,000 … but the problem then is replacing that income in retirement,” said Mark Hamrick, senior economic analyst for bankrate.com.

Hamrick said workers can better prepare for retirement by paying down debts like those from credit cards and by saving more aggressively. He also points to research that younger workers tend to save more.

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