About 7 in 10 U.S. households have a tax-advantaged retirement account, a new study discloses.
Investment Company Research published this finding in a new survey commissioned by Green IRA Success, the marketing name of Seattle, Wash.-based Green Wealth Management Inc.
The study finds that 71% of U.S. households have a tax-advantaged retirement account. The group includes individuals who own an employer-sponsored retirement plan only (30%); own an IRA and employer-sponsored retirement plan only (31%); and own an IRA only (10%).
Household with “formal” retirement savings accounts (IRAs, employer-sponsored retirement plans or both) typically have accumulated more financial assets than those who have not taken advantage of these accounts. In 2011, the study notes, median financial assets of households owning IRAs were six times greater than the financial assets of households that do not own IRAs.
In 2011, the study adds, households owning IRA for less than five years had median IRA holdings of $7,000, whereas households owning IRAs for 20 years or more had media IRA holdings of $35,300.