A new report from Fidelity, the nation’s largest provider of 401(k) plans, informed us that “52% of all Americans are not on track to comfortably pay for their retirement.”
Why? Well, consider these facts, also from Fidelity:
- “401(k) accounts lost 23% of their value last year, compared with 2021”
- “55% of those between the ages of 18 and 35 have put retirement planning and savings on hold.”
- “Over eight in ten (82%) are concerned that inflation will eat into their finances
- With a shorter horizon to retirement, more Gen X and Boomers (85%) are concerned than Gen Z/Y (78%) – There is no popular consensus on how long inflation is expected to last
- While a slight majority (57%) believe it’s here for up to the next three years, more than a third (35%) think it’s a longer-term problem
- One thing is clear – very few (7%) believe it will be gone before the summer is over
- Working Americans are split on whether they think there is anything they can do to counteract the impact of inflation: 51% say meaningful action is beyond their control while 48% disagree
- Still, even among those closest to retirement – the Boomers – very few (8%) strongly agree they will need to postpone their planned retirement date
“American savers continue to navigate through uncertainty, and as a result, may consider pulling back on saving for the future,” said Rita Assaf, vice president of retirement at Fidelity Investments. “When it comes to long-term investing, staying focused on your individual goals is critical. Having a plan in place is one solid way to help weather any storm, as we’ve seen the last few years and weeks with the pandemic, inflation and market volatility.”
Click here to read Axios news account of the Fidelity research.