Half of Americans approaching retirement have nothing saved

Half of Americans approaching retirement have nothing saved
GAO report reveals 48% have nothing put away in 401(k)s or individual retirement accounts.
MAR 27, 2019
By  Bloomberg

The bad news is that almost half of Americans approaching retirement have nothing saved in a 401(k) or other individual account. The good news is that the new estimate, from the U.S. Government Accountability Office, is slightly better than a few years earlier. Of those 55 and older, 48% had nothing put away in a 401(k)-style defined contribution plan or an individual retirement account, according to a GAO estimate for 2016 that was released Tuesday. That's an improvement from the 52% without retirement money in 2013. Two in five of such households did have access to a traditional pension, also known as a defined benefit plan. However, 29% of older Americans had neither a pension nor any assets in a 401(k) or IRA account. (More:Retirement savings bill re-introduced in House with bipartisan backing.) The estimate from the GAO, the investigative arm of Congress, is a brief update to a more comprehensive 2015 report on retirement savings in the U.S. Both are based on the Federal Reserve's Survey of Consumer Finances. The previous report found the median household of those age 65 to 74 had about $148,000 saved, the equivalent of an inflation-protected annuity of $649 a month. "Social Security provides most of the income for about half of households age 65 and older," the GAO said. The Employee Benefit Research Institute estimated earlier this month that 41% of U.S. households headed by someone age 35 to 64 are likely to run out of money in retirement. That's down 1.7 percentage points since 2014. EBRI found these Americans face a combined retirement deficit of $3.83 trillion.

Latest News

DeSantis unleashes ‘Florida DOGE’ in quest to kill property taxes
DeSantis unleashes ‘Florida DOGE’ in quest to kill property taxes

To help fund the proposal, the governor and Florida's finance chief are probing municipal finances on a "local government accountability tour" to uncover potential waste.

Edward Jones job cuts and buyouts hit 811 employees
Edward Jones job cuts and buyouts hit 811 employees

Edward Jones’ job cuts and overall realignment internally are contributing to higher costs for the company, it said in its recent quarterly report.

Advisor moves: LPL nabs $715M team from Cetera's Avantax community
Advisor moves: LPL nabs $715M team from Cetera's Avantax community

Meanwhile, Fifth Third's RIA arm adds a former billion-dollar BNY trio in Boulder, Colorado, while a hybrid RIA opens a new North Carolina location with a former Raymond James-affiliated team.

Tax compliance costs US economy over $536B, Tax Foundation finds
Tax compliance costs US economy over $536B, Tax Foundation finds

Analysis highlights swelling out-of-pocket costs and wasted time on paperwork, with an outsized toll on businesses and around crypto transactions.

Raymond James taps Allianz alum in continued push into ETF space
Raymond James taps Allianz alum in continued push into ETF space

The appointment to its investment management arm comes roughly a year after the firm first announced plans to launch its own exchange-traded fund platform.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.