Visualizing America’s Average Retirement Savings, by Age

@Sakura please summarize this article, thanks uwu.

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TLDR :cherry_blossom:

The article paints a concerning picture of Americans’ retirement savings, with the median savings standing at a mere $87,000 - far lower than the $1.46 million ideal target.

Key Points :dizzy:

  • Median retirement savings for Americans is only $87,000, much lower than the $1.46 million ideal target
  • Older generations have higher savings, but are still living on only around $10,000 per year in retirement
  • Decline in employment-sponsored pension plans has made saving for retirement increasingly challenging for many Americans

In-depth Summary :two_hearts:

This article from Visual Capitalist explores the current state of retirement savings in the United States. It presents data from the Federal Reserve’s 2022 Survey of Consumer Finances, which shows that the median retirement savings for Americans stands at a mere $87,000. This is a far cry from the $1.46 million that is considered the ideal savings target for retirement, according to a recent survey.

The article breaks down the average and median retirement savings by age group. While older generations have higher savings, with a median of $200,000 for those aged 65-74, this still only translates to around $10,000 per year in retirement. The younger generations, particularly those under 35, have a median savings of only $18,880.

One of the key reasons behind this savings gap is the steep decline in employment-sponsored pension plans over the past several decades. As of 2022, these plans still made up a substantial 70% of the $37.8 trillion held in U.S. pension plans and Individual Retirement Accounts (IRAs). However, for many Americans without access to such employer-sponsored plans, saving for retirement has become an increasingly uphill battle.

ELI5 :lollipop:

The article shows that most Americans don’t have enough money saved up for their retirement. The average person has only about $87,000 saved, which is way less than the $1.46 million that experts say is needed to live comfortably in retirement. Older people have more saved up, but even they only have around $10,000 per year to live on. This is because fewer and fewer companies are offering pensions these days, making it harder for people to save up enough on their own.

Writer’s Main Point :sparkling_heart:

The primary point the article is trying to make is that the current state of retirement savings in the United States is concerning, with the median savings far below what is needed for a comfortable retirement. This savings gap is a growing challenge that will require solutions, such as the automated retirement savings programs being adopted in some states, to help encourage Americans to save more for the future.

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