Alice Munnell (Director of the Center for Retirement Research at Boston College) has a piece (June 20th) at The Wall Street Journal about how much we are actually saving for retirement with our 401(k)s. So, how are we doing? To answer this question, she reviews a simulation to predict an accumulated value and 2007 data from the Federal Reserve's "Survey of Consumer Finances." Her findings:
In fact, the typical individual approaching retirement had only $78,000, far short of the simulated amount. (Note that the reported amounts include holdings in Individual Retirement Accounts (IRAs) because these balances consist mostly of rollovers from 401(k) plans.) Moreover, those at younger ages do not appear to be on track in their accumulations either.
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