Retirement savings crisis could be even worse than feared: studyNews added by Paul Wilson on July 2, 2013
Paul Wilson

Paul Wilson

Denver, CO

Joined: May 30, 2007

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The news about Americans' retirement savings (or lack thereof) may be even worse than previously imagined, according to a new study from the National Institute on Retirement Security.

The report, "The Retirement Savings Crisis: Is It Worse Than We Think?" examines how Americans' savings are faring compared to targets recommended by financial services firms.

Forty-five percent, or 38 million working-age households, do not have any retirement assets, the study found. Among workers 10 years away from retirement, the median savings is just $12,000, while one-third of those between the ages of 55 and 64 haven't saved at all for retirement, the report said.

Meanwhile, approximately 92 percent of working households fail to meet conservative retirement savings targets for their age and income based on 401(k)-type accounts and IRA balances, according to the study. Sixty-five percent of households fail to meet these targets even when their entire net worth is included.

Other key findings include:
  • The collective retirement savings gap among working households age 25-64 ranges from $6.8 to $14 trillion, depending on the financial measure.

  • Public policy can play a critical role in putting all Americans on a path toward a secure retirement by strengthening Social Security, expanding access to low-cost, high quality retirement plans, and helping low-income workers and families save.

  • The collective retirement savings gap among working households age 25-64 ranges from $6.8 to $14 trillion, depending on the financial measure.

  • Account ownership rates are closely correlated with income and wealth. Households that own retirement accounts have more than double the income and five times the non-retirement assets of households that do not own a retirement account.
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