A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, June 08, 2005

Are Americans Ready for Retirement?

A special thanks to Kaja Whitehouse at Dow Jones for showing me where to find this information.

Fidelity just released the findings of a study about Americans readiness for retirement. The findings aren't encouraging. According to the study, which you can read by clicking on the above link, the median replacement rate if nearly 60% of workers' income. The word "median" means that half of the workers surveyed fell below 60% and half were above 60%. At the 60% level, a worker who makes $100,000 now can count on $60,000 when they retire.

The uncomfortable part about this 60% number is that it includes pension money as well as Social Security, neither of which is a sure bet to be around in its current form. The bottom line from all this: workers simply aren't saving enough for retirement.

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