One way to evaluate retirement savings is to look at a retirement savings to income multiple. In this post we’ll look at a good multiple to target and how Americans are doing. How do you compute a retirement savings to income multiple? Take a household’s total retirement savings and divide by typical household income to […]
Unfortunately, most people aren’t on track to save a significant amount of money for retirement. Depending on how you do the math, 32-61 year old households averaged around $120,809.40 in retirement savings. Age, of course, matters. Using a very strict definition, households headed by 30-34 year olds averaged $24,254.48 in retirement savings with a median of […]
In 2016, American households headed by someone aged 32-61 averaged $120,809.40 in retirement savings, or $264,453.30 using an expansive calculation. Using the same calculations and definitions, American households have a median of $7,800 and $17,000 saved, respectively. American Retirement Savings in 2016 In 2016, the Economic Policy Institute released a study with an interesting dive […]
In 2006, Former President George Bush signed a well intentioned law which allowed companies to automatically enroll employees in the company retirement program – and to automatically choose the investment in which they were enrolled. The Pension Protection Act of 2006 authorized companies to automatically enroll new participants and enroll them in three types of funds – lifecycle funds, balanced funds, and managed accounts – while absolving the companies of any financial liability for losses in the funds. As expected, the law has effectively increased the rate of participation in company 401(k) accounts.