First let's highlight the 19th Annual Transamerica Retirement Survey of Workers. This study is one of the largest and longest-running of its kind. In 2018 more than 5,100 workers and 1,800 employers were surveyed. The survey was conducted by The Harris Poll, an independent research company. The robust, nationally representative sample enables Transamerica Center for Retirement Studies to explore many different demographic segments among workers and by company size among employers.
Among their findings:
- Workers with an annual household income (HHI) of $100,000 or more have saved $222,000 (estimated median) in all household retirement accounts, compared with $47,000 among those earning $50,000 to $99,999. Among those earning less than $50,000, total retirement savings is significantly less— just $3,000. College graduates have saved $160,000, compared with $23,000 among non-graduates. Men have saved $76,000, compared with $23,000 among women.
- Please click on the image below to enlarge
Please visit Transamerica's site to learn more about their findings.
Now let's turn our attention to Fidelity's report, Fidelity Retirement Savings Assessment 2020. Data for the Fidelity Investments Retirement Savings Assessment were collected through a national online survey of 3,234 working households earning at least $20,000 annually with respondents age 25 to 74, from August 14 through September 11, 2019. All respondents expect to retire at some point and have already started saving for retirement. Data collection was completed by Ipsos Public Affairs, LLC using the KnowledgePanel®, a nationally representative online panel. The responses were benchmarked and weighted against the 2019 Current Population Survey by the Bureau of Labor Statistics. Ipsos Public Affairs, LLC is an independent research firm not affiliated with Fidelity Investments. Fidelity Investments was not identified as the survey sponsor.
Below are a couple of their findings:
- American savers have steadily improved their retirement readiness over the last 15 years to have 83 percent of the income Fidelity estimates they will need over the course of their expected retirement years.
- Please click on the image below to learn more about the savings rate of American households.
This analysis is for educational purposes and does not reflect actual investment results. An investor’s actual account balance and ability to withdraw assets during retirement at any point in the future will be determined by the contributions that have been made, any plan or account activity, and any investment gains or losses that may occur.
Fidelity's press release was published on January 30, 2020.
From Fidelity:
"There's a famous quote attributed to a Chinese proverb, "The best time to plant a tree is 20 years ago. The second best time is right now." And it may be true for retirement savings too. Even if you didn't save as much or as often as you'd like in the past, today is a great time to act."To learn more, read Fidelity Viewpoints® articles devoted to retirement planning, including: 1) Retirement savings: Who's on target? 2) The three A’s of successful saving and 3) A Retirement Roadmap.
