Most workers who aren’t saving for retirement through their employers aren’t saving at all, the study found
New data suggests the average American worker has under $1,000 saved for retirement.
A report from the National Institute on Retirement Security found that the median savings for all employed adults between the ages of 21 and 64 were approximately $955. The study includes workers with 401(k) and other retirement savings plans, as well as the approximately 56 million workers who do not have access to employer-sponsored retirement plans.
Workers with retirement savings plans have a median balance of approximately $40,000 saved, according to the report. That figure is nowhere near the $1.5 million that Americans say they need to feel comfortable fully retiring.
This is still a shockingly low number. If you graduate with a bachelors and get a job our of college and contribute to a 401k, you should easily hit 1k saved within a year. If you didn’t go to college and started working at 18, you’ll be making less, but should still be able to save 1k by 22. Even shitty employers have retirement programs, it’s just that most hourly workers won’t take the time to sign up. There’s only one way the median can be 1k, and that’s because at least 40% have $0 saved and the whole system is completely broken for them.