U.S. Retirement Savings, 401Ks
While the U.S. economy is experiencing the second-longest expansion in stock market history, Fidelity Investments is reporting the average American's #401K savings account increased to $104,000 in the 2nd quarter of the year, a 6 percent jump from the previous year, according to a report by #CNBC reporter #Bob Pisani today.
Meanwhile, the average #IRA jumped 7% to $106,900. For those already closest to retirement age, Vanguard reports the average 401K held by an American aged 65 or older is now $209,984; the median balance is $64,811, which means half have more than this figure and half have less.
Though the increased balances are a pleasant development, these average balances are still woefully low, considering many experts believe it will take 2- to 4-times these amounts to living another 20-plus years in retirement.
As one retired friend in Northern Virginia said, " I invest with both Vanguard and Fidelity and they have grown the most in the past few years." He added: "I have read that it requires almost a million in savings to have a comfortable retirement these days. For older folks, the biggest expense will be healthcare."
The reality and disappointing part of these statistics is most Americans are just not saving for the future. The only reason why the averages are as high is due to a great amount of "super savers" who are pulling up the averages. For instance, there are some 157,000 Americans with 401K balances greater than $1 million.
How is your retirement savings shaping up compared to these numbers? Are you going to be able to retire comfortably in your dream home somewhere, like this private world-class luxury golf and lakefront community below #BellaCollina near Orlando?