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!