Wednesday, February 20, 2019

Confidence in Retirement

Are you increasingly confident about your retirement? More Americans are these days. The University of Michigan's "Change in the Likelihood of a Comfortable Retirement Compared with Five Years Ago" hit a level of 109 in February. The index hadn't been at that level since January 2001.

Supporting that positive outlook, a recent Fidelity Investments survey of more than 3,100 households showed that the typical saver is on track to have 80 percent of the income the financial services company estimates older Americans will need to cover expenses in retirement. The average 401(k) account at Fidelity hit $104,300 during the fourth quarter of 2017.

The median savings rate in a retirement plan is now 8.8 percent of pay, up from 3.6 percent in 2006, according to Fidelity. However, that is still far below Fidelity's suggested savings rate of 15 percent of salary, including employer matches.

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