How Much Are Workers Saving?

Alicia H. MunnellAndrew Varani Francesca N. Golub-Sass

IB#34

Introduction

It is crucial that today’s workers save for retirement for two reasons. First, Social Security replacement rates will decline due to increases in the Normal Retirement Age, rising premiums for Medicare, more personal income taxation, and potential adjustments to restore financial balance to the system. Second, accumulations in 401(k) plans may well be much lower than people anticipate. As such, personal saving will become increasingly necessary for retirement security…