Vanguard, a big name in defined contribution retirement plans like 401ks, recently released their How America Saves 2013 report (pdf) which included data from over a coque samsung coque xr iphone slim galaxy 9 plus million retirement plan participants. The report itself is quite dense coque samsung galaxy core plus adidas and a bit insider coque samsung galaxy j6 2018 fortnite focused, but this Vanguard blog post teased out some interesting data about the average account balance, savings rates, and asset allocation of these employees.

Whenever you hear an statistic involving retirement plans, it can be confusing because you including both young, brand new workers and those age 60+ who may have been working 30+ years. Thankfully, these stats are broken down into age groups. I threw the numbers into a spreadsheet to make the more palatable charts below. How do you compare

These numbers don tell the whole story as people may have retirement savings outside employer based plans, including any pensions, IRAs, or taxable accounts. Still, only around 25% of private sector workers that participate in a retirement plan have both a pension and a defined contribution plan (out of all workers, only 15% have a pension). This makes it seem unlikely that a 4 10% contribution rate will be adequate for the average worker to retire comfortably.

Some studies have suggested a minimum safe savings rate of 16%, and coque huawei 10 lite you can see the direct relationship between savings rate and years until retirement here.

I amazed at how low these numbers are. I know I probably targus coque samsung a 9 carrefour am a bit extreme in the other direction as far as a coque samsung a3 2016 adidas percentage of my income saved and the amount I have saved at age 33, but a little piece of me coque iphone xr porte carte sans contact wonders if we are fools for living so cheaply and saving so much. With all these bailouts, country debt, and studies like this that show that people approaching goyard coque samsung retirement don have a prayer of having enough to live comfortably, I fear they will find a way to raid the savings of people who actually have it and spread it to those who have it up coque samsung galaxy trend 2 lite foot and not saved anything. Hope I am wrong, but I see a disturbing trend toward making savers the sacrificial lambs for everyone else.

These surveys from companies like Vanguard are informative but need to be taken with a big grain of salt. If Fidelity, where my 401 account is, did a similar boulanger coque samsung galaxy grand prime survey, my 401 account would register very close to Vanguard average for my age above. But that completely ignores my 457 account, my Roth IRA, and my taxable account. Compiling these kinds of numbers from customer accounts like this can only underestimate the results when trying to answer the question much are people saving for retirement. But we should consider coque samsung galaxy j5 psg a few things. First about 20% of people still have pensions. If you got a good pension coque samsung j1 2016 personnalisé at work then theres generally no 401k or similar. You got about 15% of people under the poverty line and I don generally expect poor coque samsung galaxy a3 ananas people to have fat retirement accounts. Then you coque samsung galaxy grand prime price minister got say 1 5% of people who are doing very well financially coque xr iphone motif and either have high assets or otherwise may not need to stash money for some coque samsung j3 2016 strass future retirement. Between these groups thats roughly 40% of the population who may not have need or ability to invest in retirement accounts. If you take that into account then the other 60% may be saving close to $300k by age 65. Add in the social security that a married coque samsung galaxy grand prime etui couple would get and you could replace 75% of their income between 401k withdrawals and SS. Not so awful.

I would agree that the balances stat can be coque samsung galaxy a3 clapet misleading, as many coque huawei bts people may roll over their old 401k into an IRA and start fresh with a new 401k at the new job. That why I focused my comment on the contribution rate, which I think is more telling. Putting aside just 4 10% is just not going to cut it really.

Keep in mind that these stats are taken from people with a 401k that Vanguard does the recordkeeping for, which tend to be larger corporations and higher incomes than average.

Another observation is coque huawei mediapad m3 lite that people tend to get saving for retirement late in the game, with both a higher income and a higher savings rate when they get older. So people tend to get serious when they need to, but they don get to benefit as much coque samsung galaxy core prime silicone licorne from compounding returns as much as they could.

Matt, they/us may end up changing the tax code to help those who have not prepared themselves for retirement. It wouldn be straight up raiding your accounts. It might be something like means testing social security and raising various tax rates. I hope it never means going back on promises made to those who have tax advantaged accounts like the Roth. But, it will also mean that these folks will be on a more limited income and depend far more on social security benefits than you do. coque samsung j3 et film I am amazed at how little my friends save. I try to gently nudge them along but it is a tricky subject. How many of you try and be a good friend in this respect What approach do you use

As an advice consultant with a major employer sponsored coque samsung galaxy s7 my hero academia retirement plan administrator, I can tell you anecdotally these figures seem spot on to me. Most people, in my experience, lack outside retirement assets to include, and when they do it usually insignificant.

The bottom line is we headed for a retirement crisis down the road as a nation, I believe. Many people will only have social security, assuming it there for them. People just don save enough, or get started saving early enough. And some have wholly inappropriate risk levels in their investment strategies. I am not your financial advisor. Do not take it as legal, financial, or tax advice for your personal situation…