Retirement Gal

All Things for a Secure Retirement

  • Home
  • About
    • Terms of Use
  • Contact

Still Behind, But Improving

  • Retirement
Share:
fb-share-icon
Tweet

Today, American households headed by individuals between the ages of 35 and 64 are running $3.83 trillion short of the amount they need to safely carry them through their post-working life, according to new data by the Employee Benefit Research Institute.

However, the last time EBRI ran the numbers, in 2014, those families were $4.44 trillion behind. So in a “glass half full” kind of way, that can be considered a significant improvement.

Across all generations, the savings shortfalls have narrowed. People between the ages of 45 and 49 are currently $43,000 behind on their retirement savings, compared with $49,740 in 2014. People in their late 30s are now $49,182 behind where they should be, instead of $63,407.

According to the study, every group under age 60 is better than they were five years ago. (EBRI uses a complex model on U.S. households to arrive at these numbers, analyzing the behavior of some 50 million retirement participants and simulating more than 1,000 different life outcomes for each retiree.)

The study cites the movement at companies to auto-enroll employees in their 401(k) plans as a driver for much of the improvements, and the stock market rally has also helped.

Further progress in strengthening retirement savings is also being aided by some states that have started to offer individual retirement accounts to employees who don’t have access to a 401(k). The early impacts are already promising, as in Oregon, where the number of people with account balances in the state plan swelled to 21,743 last year, compared with 1,142 in 2017.

To be sure, while Americans are less behind than they were in 2014, they’re still not where they need to be. But any positive step in the right direction should be encouraged.

Retirement Savings
April 18, 2019 Melanie

Post navigation

America’s Biggest Money Regrets → ← More Prepared for Death than Life?

Connect with Us

RSS
Facebook
Facebook
fb-share-icon
Twitter
Visit Us
Follow Me
Tweet
LinkedIn
Share
YouTube
Follow by Email
Financial Perspectives

More from Us

As part of Financial Perspectives, we share our unique view through these other affiliated blogs:
Financial Perspectives
Investment Edge
Retirement Corner
The Sharp Chartist

Recent Posts

Expect the Unexpected

Expect the Unexpected

Share:

More Info
10 Ways Retirement Has Changed Over the Last Decade

10 Ways Retirement Has Changed Over the Last Decade

Share:

More Info
It’s RMD Season!

It’s RMD Season!

Share:

More Info
2020 Adjustments for Taxes and Contributions

2020 Adjustments for Taxes and Contributions

Share:

More Info
Social Security 2020

Social Security 2020

Share:

More Info
How Life Expectancy Impacts your Retirement Plan

How Life Expectancy Impacts your Retirement Plan

Share:

More Info
Like Squeezing Blood Out of a Turnip

Like Squeezing Blood Out of a Turnip

Share:

More Info
Breaking Bad Habits

Breaking Bad Habits

Share:

More Info
Break Out Those “Childproof” Locks

Break Out Those “Childproof” Locks

Share:

More Info
Real (Purchasing) Power

Real (Purchasing) Power

Share:

More Info

Disclaimer

The information provided on the Blog is provided for informational purposes only and should not be used as a substitute for personalized professional financial advice. Participation in any way with the Blog does not constitute an investment advisory, financial or retirement planning engagement. You should consult with your investment adviser or another financial professional before making any investment decisions. While all information on the Blog is gathered from sources that we deem to be reliable, we cannot guarantee the completeness and/or accuracy of such information. From time to time general investment guidance may be given in the Blog in response to questions asked by readers of the Blog. There is no guarantee as to the risk, returns, and performance of any investments referenced herein.

Copyright Retirement Gal and Financial Perspectives | Terms of Use