Retirement Balances Are Up — But Workers Are Still Worried

Record Savings

Americans feel more behind on retirement than their savings might suggest.

Last quarter, the average balance in 401(k) and IRA retirement savings accounts reached its third-highest level on record, per Fidelity Investments data cited in a CNBC report. Two major stock indexes, the S&P 500 and Nasdaq Composite, recorded their most recent all-time highs in July, helping investments grow.

However, this rosy data clashes with the sentiment of many account holders.

Retirement Regrets

Four out of ten U.S. workers (40%) say they have fallen behind on their retirement goals, according to an August survey by CNBC.

The same proportion of savers feel that they started to save too late, which is now one of the main reasons why they’re feeling behind. Other reasons include debts and insufficient income.

Saving Early and Actively

Getting an early start is critical to stockpiling robust retirement savings. Even if a starter salary may only allow for a smaller savings contribution, these percentages and amounts should be reassessed regularly in the face of salary raises and bonuses.

Most employers that offer 401(k) plans allow workers to automatically deduct contributions from paychecks, which may make it easier to plan and stick to retirement goals. Another increasingly common feature called “auto-escalation” raises your contribution rate marginally each year, up to a preset maximum. The change to your lifestyle may be minor, if noticeable, while the change to your nest egg over time could be major.

Read more on the importance of saving for retirement early here.

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