All articles tagged with #income distribution
Wealthy Americans in the top 10% now account for nearly half of US consumer spending, supporting the economy amid a slowdown in hiring and rising debt issues among other income groups, but this reliance on the wealthy's spending could pose risks if their economic confidence wanes.
Vanguard research suggests that only top earners, who hold a significant portion of their wealth in investments, may be financially on track for retirement in the U.S. Investing plays a crucial role in building wealth, with higher-income workers more likely to have access to employer-sponsored retirement plans and invest in stocks and bonds. In contrast, lower-income workers tend to hold a larger share of their assets in cash, with more than half of Americans keeping more money in cash due to recession concerns. Vanguard recommends greater participation in capital markets to improve retirement readiness, but financial experts caution that building cash reserves can be challenging for lower-income households.