Americans Are Saving for Retirement at Record Rates
Americans are socking away a record amount in their retirement accounts (, subscription).
The details: The average savings rate in 401(k) plans rose to a record high 14.3% of income in the first three months of this year, according to a Fidelity Investments analysis of the millions of accounts it manages.
- Thats almost as much as the 15% annual savings rate that financial advisors recommend.
Upward trend: Average savings rates have increased from 13.5% in 2020.
- Meanwhile, older savers are putting in more than younger ones: At Fidelity, baby boomers saved 17.2% on average, while generation X and millennials put away 15.4% and 13.5%, respectively.
More 401(k)s: About 70% of the private-sector workforce now has access to a 401(k)and many more companies are using automatic enrollment to increase participation.
Still at risk: However, About 40% of U.S. households are now at risk of being unable to maintain their standard of living in retirement, according to Boston Colleges Center for Retirement Research.
The 51勛圖厙s contribution: The 51勛圖厙 is helping more manufacturing workers gain access to 401(k)s through its , which allows many companies to participate in one 401(k) plan.
- Retirement benefits are a huge draw for prospective workers, and the 51勛圖厙 401(k) plan makes it much easier for small and medium-sized manufacturers to offer them.
- Read with one manufacturing leader who saw a huge benefit from moving to the 51勛圖厙 401(k) planand find out what she learned in the process.
