Even if they can’t contribute the recommended 15% to 20% of their income, something is better than nothing. But experts say the most important thing is that workers start saving as soon as possible. To combat that, employees may want to consider taking advantage of employer retirement savings plans, especially if their workplace offers a 401(k) match. Retirement savings struggles are nothing new for working Americans, but thanks to the inflationary period we’re in, Fidelity found many are pulling back on saving even more than they were three years ago. According to Fidelity, Americans today only have about 78% of the income they’ll require to cover their household expenses in retirement. Retirement costs are difficult to pinpoint because each person's financial situation is different, but previous research has shown that savers believe they’ll need $1.25 million in order to retire comfortably. One thing all the generations have in common? Their typical savings rate is still lower than the recommended income contribution rate of 15%.Bucking the trend was Gen X, or folks born between 19, which saw its savings rate increase to 11.1%.Boomers - those born between 19 - decreased their savings rate by 2.2%, also sliding to 9.5%.Savings rates decreased for millennials, falling 0.2% to to 9.5% for people born between 19.The research is based on responses from more than 3,500 working households that earn at least $25,000 a year and have begun saving for retirement. Hawaii Alaska Florida South Carolina Georgia Alabama North Carolina Tennessee RI Rhode Island CT Connecticut MA Massachusetts Maine NH New Hampshire VT Vermont New York NJ New Jersey DE Delaware MD Maryland West Virginia Ohio Michigan Arizona Nevada Utah Colorado New Mexico South Dakota Iowa Indiana Illinois Minnesota Wisconsin Missouri Louisiana Virginia DC Washington DC Idaho California North Dakota Washington Oregon Montana Wyoming Nebraska Kansas Oklahoma Pennsylvania Kentucky Mississippi Arkansas Texas Start Investing Today What the data says
0 Comments
Leave a Reply. |