Americans Have More Saved For Retirement Than Ever Before
Summary
American workers have saved more for retirement than ever before. Average retirement savings today are twice what Americans had put aside in 2001. 75% of Americans are optimistic about retiring on their terms.
Strong Economy Leads to Record Retirement Savings
Americans now have more saved for retirement than ever before, with average savings doubling since 2001. This comes on the heels of strong economic trends that are giving individuals greater capacity to set aside funds for the future. The increase in retirement savings corresponds to Americans having more money in their pockets overall. Wages have gone up by over 4%, after adjusting for inflation, and inflation itself has fallen to half of its post-pandemic high. The US GDP has also grown by 3% and consumer confidence and spending are high.
The upward trend in retirement savings is being seen across demographics. Every segment within age, race, education level, and income brackets has seen increases in the funds they are able to set aside over the last two decades. A significant 62% of Americans aged 18-29 have already started saving for retirement. 75% of Americans feel confident about being able to retire when and how they want to.
In addition to rising income, another factor contributing to record retirement savings is the strong performance of the US stock market. Markets have hit all-time highs, not only boosting income gains from investments, but also increasing the value of retirement accounts.
As Americans navigate their financial planning, these factors collectively contribute to a more optimistic retirement outlook, signaling a shift towards greater financial resilience and preparedness.
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