RETIREMENT SAVINGS
Retirement savings are a critical indicator of long-term financial security. Our data show the likelihood of having retirement savings following a predictable life-course pattern: low in young adulthood, peaking in middle age, and declining around retirement age. From 2004 to 2022, retirement savings rates increased slightly across all age groups, with older men showing the largest gains during this period.
However, significant disparities remain. Unmarried individuals are much less likely to have retirement savings, and education level is strongly associated with savings rates, with higher education correlating to greater rates. Racial disparities are also evident: White individuals are the most likely to have retirement savings, with the same age differences as mentioned earlier. In contrast, Black and Hispanic individuals are less likely to have retirement savings and exhibit relatively stable rates across ages.
These patterns underscore the need for targeted strategies to address the gaps in retirement readiness across demographic groups.
EXPLORE THE DATA
Definition:
Percent of individuals who live in households where they and/or their spouse have a workplace-based retirement plan or an IRA.
Example:
People living with a spouse who has a 401K retirement plan but do not have one themselves are categorized as having retirement savings. People who rely on other investments to live off of in retirement (such as an investment portfolio or real estate investment) are not categorized as having retirement savings