In the last post, It’s a Bleak Road At Retirement If You Make Less Than Average Wages, we looked at odds of a successful retirement in relation to income and retirement age. It doesn’t look good for the majority of income earners. We saw that the likelihood of successful retirement was closely associated with the groups income quartile. That makes sense; since most retirement assets are saved from a lifetime of income, having a larger income would make it easier to have excess earning that one could save.
So the next question: what is the most reliable method of increasing your earnings and maintaining your income so that you can save for retirement?
Well, isn’t this handy! The Current Population Survey at the Bureau of Labor Statistics show that unemployment is negatively correlated with educational attainment, and that educational attainment is associated with higher incomes.
So, does this mean you should just go out and get as high a degree as you can? Not necessarily. There are differences in the values of different degrees with regard to the job market. There are also variances with the amount of time and money required by different degrees. But, over a large population, and in general, more education means more pay and more consistent work. And that will be an edge to keeping yourself out of the bottom quartile of income earners.