Good Retirement News

We have some good news on the retirement-planning front: According to the Employee Benefits Research Institute, 29 percent of upper-middle-class Americans will run out of money 20 years into their retirement, and even 14 percent of wealthy people will be in the same boat. Among age groups, 47 percent of older baby boomers (those now aged 56 to 62) will be in trouble 20 years after retirement, 44 percent of younger baby boomers, and 45 percent of Gen Xers.

Why is that good news? Because even though the numbers are a little scary, they're at least moving in the right direction. In 2003, the same survey showed that 55 percent of older baby boomers and 59 percent of younger baby boomers were similarly unprepared for retirement.

The EBRI credits the improvement to the growth of 401(k), which have enforced a certain amount of compulsory retirement savings on people. Another thing 401(k)s have done is force people to learn about retirement savings and take more control of their future. That's always a good thing.