There is over four trillion dollars in the 401(k) system.While this seems like a lot of money, there are some shocking retirement statistics to consider. This number doesn’t include all of the other types of retirement plans including pension plans, IRAs, and many others. In the 401(k) system alone though, people have over 4 trillion dollars trapped.
It is alarming how the 401(k) system has failed so many Americans. The average person that’s fifty years of age only has less than twenty five thousand dollars in their 401(k). This is partially due to a lack of trust in the system, excessive fees as well as a lack of planning and education.
Three Shocking Retirement Statistics
- Around 30% of Americans have no retirement savings. According to the U.S. Census Bureau, “one out of every six elderly Americans is already living below the federal poverty line.” According to the American Benefits Council, 4/5 American full-time employees have an employer sponsored retirement plan at their job. Despite this fact, a reportfrom the Federal Reserve claimed that 31% of non-retired respondents have nothing saved for retirement at all.
- The average Social Security monthly benefit in 2015 was $1,328. Social Security is meant to be a benefit to supplement retirement but for 22% of married seniors and 47% of single or widowed seniors, Social Security makes up 90% of their income.
- Only 18 percent of workers in the United States believe confidently that they will have enough money to comfortably live while they are retired. That leaves 82 percent, who are not confident that they will have enough money to live in retirement comfortably.
These are just a few of the shocking retirement statistics clearly show that there is urgency here. They are shocking and alarming. People are looking for better choices. People are asking for predictable and reliable investment options to save for retirement in. More and more people are learning about moving their money over to safe, shielded products.