Is the "gap" between those properly saving for retirement and those who are not widening? According to a new report by Empower Retirement, it is—and at an alarming rate. As Time reports, findings show that nearly four out of five pre-retirees are not on track to have enough money saved to provide for themselves throughout their retirement.
The defining factor, according to Empower Retirement, between the groups was access to 401(k) saving plans, or other retirement savings plans. They estimate that those with these plans had an average lifetime income score of 74%. Those that did not only had a score 42%.
Perhaps even more telling are the findings on those who have sought professional retirement planning services. The study found that those who had professional help were, on average, prepared to replace about 82% of their income. Those who had chosen to not seek retirement planning services were on pace to only replace 55% of their income.
Time detailed a number of other findings from Empower Retirement's study:
- The average retired couple will incur $220,000 of medical expenses
- Almost two-thirds of workers are not confident they can cover medical expenses during retirement
- Saving just 10% of pay greatly increases your projected replaced income
A Time to be Vigilant
While many other statistics from Empower Retirement's report support growing health in job confidence and security from just a few years ago, it also shows that many people are not taking the necessary steps to properly support themselves in the years to come. If Empower Retirement's projections hold true, scores of workers will face financial straits after their retirement and burden what should be one of the greatest and cherished periods of their lives.
There's still time to save, to plan, and to prepare. At Piermont Wealth Management, we know how out of reach establishing a sustainable and robust retirement plan can seem, but time and time again, we have helped individuals, couples, and families ensure that their futures are properly provided for.
Contact a New York retirement planner at our offices today. We are ready to assess your circumstances and help you achieve your goals. Call today to receive a free consultation.