Most Workers May Not Be Able To Retire At 65
Nearly two-thirds of U.S. workers are not saving enough to ensure a comfortable retirement by age 65, according to a new report by Aon Hewitt. Based on an analysis of 77 employers representing 2.1 million workers, the report found 68 to be the median age when workers would be able to retire with enough resources to maintain their standard of living. Also, 16% were expected to be unable to retire by age 75, The Actuary reported. The Aon Hewitt report, which examines retirement income adequacy, said only 22% of workers were on track to meet or exceed retirement needs at 65. An additional 19% would be close to having “reasonably adequate” savings if they adjusted their lifestyle, but 59% would be unable to afford to retire at 65. Aon Hewitt said the average employee would need to save around 11 times their final salary at 65 to maintain their pre-retirement standard of living. On average, the survey found, workers need to add 17% of annual pay to their retirement fund from age 25 to 65 in order to accumulate adequate income. Employees who had saved less or who delayed saving until after age 25 would need to contribute even more to make up the shortfall.
Half of U.S. Singles Not Saving For Retirement
Only 51% of single Americans have a retirement savings account, compared to 84% of married couples and 68% of those living with a partner, according to recent research from Mintel, a global market-intelligence company. Although 72% of U.S. households have a retirement plan, up from 65% in 2013, less than a third (30%) save the most they can afford to save for retirement and just 27% contribute the maximum amount allowable to their workplace plan, according to the report, “Retirement Planning U.S. 2015.” Nearly one-quarter (22%) of consumers who have an employer-sponsored plan contribute only enough to get the employer match.
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