The Continuing Retirement Savings Crisis

Source: Nari Rhee, Ilana Boivie, National Institute on Retirement Security, March 2015

From the summary:
A new research report calculates that the U.S. retirement savings crisis continues to worsen, and that the typical working household still has virtually no retirement savings.

The report, The Continuing Retirement Savings Crisis, examines the readiness of working-age households, based primarily on an analysis of the Survey of Consumer Finances from the U.S. Federal Reserve System. The study analyzes workplace retirement plan coverage, retirement account ownership, and household retirement savings as a percentage of income, and estimates the share of working families that meet financial industry recommended benchmarks for retirement savings.
The key findings of this report are as follows:
• Account ownership rates are closely correlated with income and wealth. ….
• The average working household has virtually no retirement savings. ….
• Even after counting households’ entire net worth—a generous measure of retirement savings—two thirds (66 percent) of working families fall short of conservative retirement savings targets for their age and income based on working until age 67. ….
• Public policy can play a critical role in putting all Americans on a path toward a secure retirement by strengthening Social Security, expanding access to low cost, high quality retirement plans, and helping low income workers and families save. ….
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