I know there are threads about this and it has been discussed a lot. But in looking at this latest report, well, I guess I never really absorbed how bad it is going to be for a lot of our fellow Americans.
45% of all working households have no retirement plans at all and half of those are headed by someone 45 to 65 years old! That is a hard situation to fix.
From the report:
"Account ownership rates are closely correlated with income and wealth. Nearly 40 million working-age households (45 percent) do not own any retirement account assets, whether in an employer-sponsored 401(k) type plan or an IRA. Half of these households with no retirement savings are headed by someone between age 45 and 65, and may have too few year to catch up.
The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $2,500 for all working-age households and $14,500 for near-retirement households. Furthermore, 62 percent of working households age 55-64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement."
Link to report: http://www.nirsonline.org/storage/nirs/documents/RSC%202015/final_rsc_2015.pdf
I know that many on here will say that it is their own fault for not saving for retirement. But I have to agree with this report that public policy must change to make it easier for Americans to save.
Given that half of workers that could contribute to a retirement plan DON"T contribute, I wonder if we have to go to something mandatory - like SS contributions. I don't have all the answers, but this is so sad.
45% of all working households have no retirement plans at all and half of those are headed by someone 45 to 65 years old! That is a hard situation to fix.
From the report:
"Account ownership rates are closely correlated with income and wealth. Nearly 40 million working-age households (45 percent) do not own any retirement account assets, whether in an employer-sponsored 401(k) type plan or an IRA. Half of these households with no retirement savings are headed by someone between age 45 and 65, and may have too few year to catch up.
The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $2,500 for all working-age households and $14,500 for near-retirement households. Furthermore, 62 percent of working households age 55-64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement."
Link to report: http://www.nirsonline.org/storage/nirs/documents/RSC%202015/final_rsc_2015.pdf
I know that many on here will say that it is their own fault for not saving for retirement. But I have to agree with this report that public policy must change to make it easier for Americans to save.
Given that half of workers that could contribute to a retirement plan DON"T contribute, I wonder if we have to go to something mandatory - like SS contributions. I don't have all the answers, but this is so sad.