The picture of retirement savings in America is bleak. While some US households have managed to save adequate funds to support themselves through their retirement years, a larger number of Americans have no or insufficient retirement savings.
Here are five facts about the state of retirement savings in America. Learn how your retirement plans measure up.
1. If you are saving any money at all for retirement, you are better off than almost half of working age households. Did you know that 45% of all working-age households have no retirement account savings at all?
A retirement sustained only by Social Security is likely to disappoint. The average monthly Social Security check is $1,354 as of 2016. For many people, their Social Security checks will not be enough to support their current lifestyles through their retirement years.
2. Did you know 56% of Americans report having less than $10,000 saved for retirement? That number includes individuals who have no savings at all as well as those with smaller retirement savings accounts.
3. The numbers are slightly better for those near retirement age. According to the Government Accountability Office, the average retirement fund is about $100,000 for people 55 to 64 years old.
However, financial experts recommend having at least six to eight times your annual income saved by the time you retire. For the average American making the median salary of just under $60,000, that means a retirement savings of at least $360,000.
4. Almost half of people who own IRAs have less than $25,000 in their accounts, even though the average account balance was about $120,000 in 2013 (when the latest data were available). This average is skewed a relatively small percentage of Americans who have saved more than $300,000 — only 13%.
5. According to Vanguard, one of the country's top administrator of defined contribution plans such as 401(k)s, only 12% of plan participants contributed the maximum amount in 2016. If the other 88% were offered employer matching contributions, they may missed out on money that is rightfully theirs.
If you need help with your retirement savings plans, Synchrony Bank can help.
At Synchrony Bank, we offer a variety of savings products that can help you start a retirement fund or catch up. We have several savings account types that can help you meet your retirement goals, including IRAs. You should consult your financial or tax advisor before contributing to an IRA.
Call Synchrony Bank today at 1-844-345-5789 to learn about your retirement savings plan options or contact us online.
U.S. Census Bureau: https://www.census.gov/data/tables/2016/demo/income-poverty/p60-256.html
US News: http://money.usnews.com/money/blogs/planning-to-retire/2015/05/29/5-surprising-facts-about-iras
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