Nyhart’s Fall 2010 401(k) Retirement Readiness Study was a 6-month study reviewing nearly 10,000 retirement accounts from employees at 110 public and private companies. The study evaluated how contributions to employee’s 401(k), the primary retirement tool for most of these employees, would affect the age at which they could afford to retire.
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Key results in Fall 2010 401(k) Retirement Readiness Study include:
81% of employees 18 or older will not be able to afford to retire by the age of 65
The leading cause impacting employees’ ability to retire on time is their failure to contribute enough of their income towards retirement
Employees above the age of 55 will need to contribute more than 45% of pay through the remainder of their career to retire by age 65. Employees age 45-55 must contribute 19% of pay to retire by 65.
The average participant, relying on their 401(k) as a primary retirement vehicle, will not be able to retire until the age of 73.