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America’s National Retirement Security: Study Indicates Problems

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Each year, the Transamerica Center for Retirement Studies conducts an annual retirement survey. It’s intended to explore the attitudes and behaviors of Americans regarding retirement security and benefits. Here are several noteworthy findings from the most recent study in late 2020.

  • Eighty-two percent of workers save for retirement through employer-sponsored plans or savings plans outside the workplace.
  • Thirty-four percent of workers have taken either a loan, early withdrawal and/or hardship withdrawal from their 401(k) or similar plan or IRA.
  • Among all workers, total household retirement savings is $93,000 on average.
  • Baby Boomer workers have the most retirement savings at $202,000, compared with Generation X ($107,000), Millennials ($68,000), and Generation Z ($26,000).
  • Forty-nine percent of workers expect to work past age 65 or do not plan to retire. This statistic is not surprising as many Americans’ retirement savings may be inadequate. 

Retirement Savings in the U.S. Compared to Other Countries

When it comes to retirement savings, the U.S. isn’t in the best spot. A report by Paris-based investment bank Natixis Investment Managers ranked the U.S. 18th in their global ranking of retirement security. Iceland, Switzerland, Norway, Ireland, New Zealand, Sweden, Denmark, Canada, Australia, and Luxembourg were in the top 10. The report discovered that despite an improvement in employment and high income per capita, retired Americans have a lower quality of life and income inequality, dragging the performance of the U.S. when it comes to retirement savings. 

Now is the perfect time to reflect on your retirement savings and goals using these tips:

  • Examine your retirement savings accounts to determine how much you have saved.
  • If you’re not contributing to an employer-sponsored 401(k) or a similar retirement savings plan, enroll as soon as possible.
  • Consider a Solo 401(k), SEP IRA, and other retirement options if you’re a business owner or self-employed.
  • Explore annuities as a retirement savings asset class.
  • Meet with a financial professional to discuss when you’d like to retire, what type of lifestyle you’d like in retirement, and how much you need to save to get there.

Consult Your Financial Professional

Together we can review your financial situation and determine the ideal retirement plan for your situation. Contact us today to get started! 

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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