Earlier in March, the National Institute on Retirement Security issued a report on retirement planning by Americans. Although the savings in 401(k) plans and Individual Retirement Accounts (IRA) hit $11.3 trillion dollars at the end of 2013, an all-time high, the overall news regarding retirement savings remains negative.
The report notes that nearly 45% of households with working age adults have no retirement savings in a recognized retirement vehicle, such as a 401(k) plan. For all households, even those without traditional retirement vehicles, the average retirement savings is $2,500; the number jumps to $14,500 for those near retirement. The report also finds that 62% of households with working individuals between the age of 55 and 64 have total savings of less than one year of their income.
The National Institute on Retirement Security continues to highlight the worsening condition for retirement and the need for developing retirement vehicles. In fact, the Institute stated that for all working adults between 25-64 in 2014, the retirement shortfall will be approximately $4.13 trillion dollars. The report may be found at the following link: http://www.nirsonline.org/storage/nirs/documents/RSC%202015/final_rsc_2015.pdf
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