Some two-thirds of working-age American families are currently participating in retirement plans, GOBankingRates said in a new report, citing Federal Reserve data.
A GOBankingRates survey conducted in mid-November among 1,000 adults found that 28% of those who are saving in a 401(k) have a balance between $50,001 and $100,000. Survey respondents were employed Americans 21 and older, who had been in their current job for at least a year.
The report noted that the third of nonparticipants in retirement plans may find it hard to set aside funds because of inflation. Whatever money is left over may have to go to more pressing financial concerns, such as paying off high-interest credit card debt or building an emergency fund.
Fifty-one percent of respondents believe that the typical middle-class American has less than $150,000 in retirement savings by age 65. In fact, about a third of respondents said they expect to have $100,000 or less in their 401(k)s by retirement age.
In reality, this percentage could be higher, GOBankingRates said, as 58% of Americans 65 and older have $100,000 or less in their 401(k) accounts. And 36% of older respondents reported having balances of $50,000 or less.
Thirty-eight percent of survey participants said it would be impossible to retire with $1 million in their 401(k) plans. Less than 2% reported having more than $1 million in their plans.
Generation Z respondents were the most optimistic about retiring with 401(k) balance of $1 million or more: 22% believed that they will have saved upward of $1 million when they leave the workforce.
See the gallery for how much Americans in five age groups have saved in their 401(k) plans. For more data on savings goals and more by generation, check out the full report at GOBankingRates.
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