By Alice Higham
Source: Newsweek
The typical American worker is entering later life with far less put away than many experts say is needed for a secure retirement, according to a new analysis that shows gaps in savings, access to employer plans and long-term financial stability.
Retirement Expectations and Reality
According to a new National Institute on Retirement Security (NIRS) study, among workers who had any defined contribution retirement savings at all, the median balance stood at $40,000 in December 2022. But when all workers were included—even those with no savings—the median dropped to $955.
Even among those who have started saving, the savings cushion is often thin. A Northwestern Mutual study published in April found that one-quarter of savers said they had “one year or less of their current annual income put aside for it,” underscoring how quickly an unwanted life event—such as job loss, health emergencies or market downturn—could derail long-term saving plans.