There was one number that stood out in this year’s Retirement Confidence Survey: 36% of American workers say they have less than US$1,000 in savings and investments.
The Employee Benefit Research Institute survey notes that’s an increase from 28% in 2013 and 20% in 2009. The value of workers’ primary home and any DB plans are excluded.
The large majority (73%) of those who indicate they and their spouse do not have a retirement savings plan say their assets total less than US$1,000, compared with 11% of those who have a plan. Conversely, those without a retirement plan are far less likely than those with a plan to report assets of US$100,000 or more (3% vs. 33%).
Nearly one quarter (24%) have saved between US$1,000 and US$24,999 while about one in 10 each report totals of US$25,000 to US$49,999 (9%), US$50,000 to US$99,999 (9%), US$100,000 to US$249,999 (11%), and US$250,000 or more (11%).
Total savings and investments also increase sharply with household income. More than two-thirds (68%) of those who report having less than US$1,000 in savings have household income of US$35,000 a year or less.
Workers who have done a retirement savings needs calculation (compared with those who have not) also tend to have higher levels of savings. In addition, those who have saved for retirement are more likely than those who have not saved to have substantial levels of savings.
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