On a better savings course: US retirement score rises
According to a survey by Fidelity Investments, Americans’ retirement savings are in the best shape they’ve been in more than a decade. The survey looked at more than 3,000 working households that have started saving for retirement.
After tallying up how much they’re saving in their 401(k) accounts, their expected Social Security benefits and other assets, Fidelity said that the typical saver is on track to have 80 percent of the income they’ll need to cover retirement costs. That’s the highest score since Fidelity’s surveys began in 2005, when it was at 62 percent.
Much of the improvement is due to workers saving more of their pay each year. The typical savings rate is now 8.8 percent, more than double the 3.6 percent rate in 2006.
The surging stock market, which has more than quadrupled since early 2009, has also helped to increase the value of 401(k) and Individual Retirement Accounts.