Retirement plans possessed by American adults face a collective shortfall of $4.55 trillion, or more than $47,000 per individual, the Employee Benefit Research Institute (EBRI) said in a study published this week.
The numerical amounts represent how much extra money a retiree would have to save or earn than they currently do in order to adequately pay for basic expenses and over-the-top medical expenses for retirement.
The EBRI’s Retirement Security Projection Model, which uses more than a decade of empirical data from 401(k) participants and projects retirement readiness based off of income, plan types, and wealth, noted that some demographics, in general, have higher Retirement Savings Shortfalls (RSS) than others.
The EBRI found that households had the lowest RSS, while those with the largest retirement income deficit were single females.
Among different age groups, Generation Xers—those currently in their mid-30s to mid-40s—had a higher RSS than older adults, due to rising health care costs that would be very pricey when they retire.
The numerical amounts represent how much extra money a retiree would have to save or earn than they currently do in order to adequately pay for basic expenses and over-the-top medical expenses for retirement.
The EBRI’s Retirement Security Projection Model, which uses more than a decade of empirical data from 401(k) participants and projects retirement readiness based off of income, plan types, and wealth, noted that some demographics, in general, have higher Retirement Savings Shortfalls (RSS) than others.
The EBRI found that households had the lowest RSS, while those with the largest retirement income deficit were single females.
Among different age groups, Generation Xers—those currently in their mid-30s to mid-40s—had a higher RSS than older adults, due to rising health care costs that would be very pricey when they retire.
