Pre-Retirees' Retirement Account Balances Show Many Are in Serious Trouble

Workplace 401(k)s and IRAs are an important source of retirement savings for most Americans. Unfortunately, new data indicates that these retirement account balances are far too low for millions of pre-retirees. In fact, the median balance among working households nearing retirement suggests that older Americans could be in serious trouble when it comes to retirement readiness.

The troubling new data about Americans' 401(k) balances comes from the Center for Retirement Research at Boston College. According to the center, among working households with both a 401(k) and IRA, the median combined balance of their retirement accounts was just $144,000 in 2019. While this is an increase from $135,000, the median balance of their combined accounts in 2016, it is still far below where it needs to be to provide sufficient income for retirees. And CRR indicates only half of all working households even have 401(k) or IRA balances, with the rest likely left with no retirement income at all outside of Social Security.

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Source Fool.com