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How Much Do Americans Have Saved For Retirement?

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Summary

This article looks at how much Americans have saved for retirement by examining two of the biggest retirement plan administrators, Fidelity and Vanguard. Fidelity's data shows that the average balance is $100k with double-digit savings rates and an average IRA balance of $207k. Vanguard's data shows an average balance of $141k and 80% of investors having a balanced portfolio. The article encourages readers to aim for a double-digit savings rate, increase their savings over time, diversify their portfolio, and create a long-term plan before generally leaving it alone unless there is a good reason to make a change.

Q&As

What percentage of private industry workers had access to a workplace retirement plan in 2021?
Nearly 70% of private industry workers had access to a workplace retirement plan in 2021.

How much money is estimated to be held in defined contribution retirement plans?
It is estimated that more than $11 trillion is held in defined contribution retirement plans.

What was the average balance of a workplace retirement plan according to Fidelity?
The average balance of a workplace retirement plan according to Fidelity was a little more than $100k.

What is the average and median balance for retirement plans with different income levels and ages?
The average and median balances for retirement plans with different income levels and ages vary, but the higher the income level and age, the higher the balance.

What strategies can be used for retirement success?
Strategies for retirement success include a double-digit savings rate, increasing savings over time, a balanced portfolio, and creating a long-term plan and generally leaving it alone unless there is a good reason to make a change.

AI Comments

👍 This article provides great insight into retirement savings and provides useful tips for retirement success.

👎 This article does not provide enough specific advice for retirement savings, leaving readers without a clear plan for their retirement.

AI Discussion

Me: It's about how much Americans have saved for retirement. According to the Bureau of Labor Statistics, only about half of Americans with access to workplace retirement plans are participating in them. The article looks at two of the biggest retirement plan administrators and shows that the average balance is around $100k. It also talks about the importance of a double-digit savings rate, diversification, and sticking to a plan.

Friend: That's really interesting. It's a reminder that we all need to save for retirement, but it's also alarming to see how low the average balance is.

Me: Yeah, it is. But I think the article also offers some useful advice. It stresses the importance of having a long-term plan and increasing savings over time, as well as diversifying investments and generally leaving your plan alone unless there's a good reason to make a change.

Friend: That's a great point. It's definitely something I'll consider as I plan for retirement.

Action items

Calculate your current retirement savings rate and set a goal to increase it by a certain percentage each year.
Review your current retirement portfolio and make sure it is diversified and balanced.
Research target-date funds and consider investing in one to help manage your risk.

Technical terms

Bureau of Labor Statistics: A government agency that collects, analyzes, and publishes data on the labor force, employment, wages, and prices in the United States.
Defined Contribution Retirement Plan: A type of retirement plan in which the employer and/or employee contribute a set amount of money to the plan each year. The money is invested and the returns are used to provide retirement income.
IRA: Individual Retirement Account. A type of retirement savings account that allows individuals to save and invest for retirement on a tax-advantaged basis.
Bear Market: A market in which prices are falling and investors are pessimistic.
Asset Allocation: The process of dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash, in order to achieve a desired level of risk and return.
Target-Date Funds: A type of mutual fund that automatically adjusts its asset allocation over time to become more conservative as the target date approaches.