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I'd be using that info to start building some stability into my retirement. I did that in the 90's just before the dotcom bubble burst. I shifted a bit part of my equities into low-volatility accounts. Which is why the next two bubbles didn't devastate me.
Disappearance of pensions is a pity, but it is what it is. They started disappearing over 10 years ago, and now only a minority of companies offer them.
You do not need to make 100K a year to max out the 401K, and you also do not need to max it out to benefit from it.
The so-called private sector pension heisting started in the eighties. They just progressively moved on to the so-called public sector. Slower going there. Municipal BKs are largely about pension funds.
I agree. You should be able to contribute at least 40,000 per year tax deferred. Same with IRAs... We don't know what social security will look like 30 years from now so the government should raise the limits so we can save enough in case SS can't continue to do what it's doing now...
I agree the cap should be higher since everyone agrees the SS is in jeopardy.
The surging stock market helped boost average 401(k) balances to yet another record high in 2013. But many young and low-income workers are not doing such a great job of keeping that cash in their accounts.
The average 401(k) balance hit $89,300 at the end of the year, up 15.5% from $77,300 in 2012, according to an annual tally by Fidelity Investments. Most of the boost came from stock market gains as all three major stock indexes ended the year more than 20% higher
People on the verge of retirement, ages 55 to 64 years old, saw their nest eggs grow to an average balance of $165,200 from $143,300 in 2012, Fidelity said. Savers with both a 401(k) plan and Individual Retirement Account managed by Fidelity had larger nest eggs, with an average balance of $261,400, up from $225,600 in 2012.
If the people 55 to 64 think they are going to retire on $165K they may want to get used to wearing paper hats and asking people if they would like fries with that order.
That's fine and dandy for desk jockeys, but many others might not be able to work. And chances are you will be eliminated from your job by then. Like I said earlier a lot of folks will look forward to eating canned dog food in retirement.
At places like Whole Foods or other upscale supermarkets the dog food is almost chain resteraunt quality!!! Fido deserves the best.
If the people 55 to 64 think they are going to retire on $165K they may want to get used to wearing paper hats and asking people if they would like fries with that order.
That's not the point here. The average balance is $165K, there is no claim saying whether or not that is enough by itself.
I laugh when people talk about pensions and 401Ks. I've never had or been offered either.
I'll be living off investments from Roth IRAs and Social Security in retirement. It should be enough...but one can never predict the future.
Yeah thats the horrible part of all of this, so many here are all "thats horrible that they only have X in their 401L" not for a second recognizing that the majority of people don't have a 401K...
There are 50 million 401Ks in the US....with a population of 300 million.
The average amount in those plans is laughable.
I had 50K in mine in 2008, the recession, and being out of a job for over a year blew that away. Now im slowly working on building it back up....
Also the original article only addresses those with Fidelity, the AVERAGE balance of 401Ks? LOL:
"people within 10 years of retirement have saved an average of only $78,000, and more than a third of them have less than $25,000."
The 168K number being tossed around appears to be only for that particular 401K company.
I was thinking a couple of years. However, by retirement, you should have zero bills other than tax burdens.
Depends a lot on OTHER decisions. My wife and I were very focused on paying off credit monthly. That has allowed us to retire pretty comfortably on what some claim is "way too little". But America is full of people who think plastic is a magic key to escape cash flow problems. They should have fought harder against bankruptcy "reform". They were casual AND lazy at a critical moment.
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Fido deserves the best.