Retirement facts
How much to save
Save 13 percent of your income every year, starting at age 35; ideally earlier.
|
Published: October 3, 2008
Leave a comment
How much to save
Save 13 percent of your income every year, starting at age 35; ideally earlier. Longevity From 1990 to 2020, the 55 and older population will grow 86 percent to nearly 100 million Americans. The average age of death is 78; women outlive men by about five years. Of seniors 85 and older, 71 percent are women. There’s a 50 percent chance that one spouse in every couple will be alive at 90. By 2050, more than 1 million Americans will be 100 years old or older. Saving Rates Estimates show at least two-thirds of Baby Boomers ages 55 to 64 lack the means to retire comfortably, or savings that would provide a lifetime income stream equal to at least 80 percent of their current income. Since 2005, Americans have had a negative total savings rate, excluding home equity. Boomers (born 1946 to 1964) average $150,000 worth, including home equity. Half of workers have no employer-sponsored retirement accounts. Only 10 percent or so of those have pensions. Among workers who have 401(k) retirement plans, the average balance is $57,000. Only 11 percent of people put new money in individual retirement accounts. Most of the money in IRA accounts has been rolled from 401(k) s and other employer-sponsored plans. Crisis for women Nearly two-thirds of women earn less than $30,000 a year, and women’s earnings average 77 cents for every dollar earned by men -- a lifetime loss of more than $300,000. The average Social Security benefit for women is $867 a month; $10,399 a year. Thirty percent of women 75 to 79 are poor or near poor. 401(k) Trends If they’re not automatically enrolled in 401(k) s, a quarter of eligible employees don’t make the effort to enroll. One in four workers, ages 45 to 54, are withdrawing money from their 401(k)s and IRAs -- or borrowing against their 401(k)s and then leaving jobs before the accounts are vested, or fully theirs.
If you prefer your thoughts to appear in The Oklahoman's Opinion section, we encourage you to submit a letter to the editor.
Prev
