In fact, according to Fidelity Investments’ latest biennial Retirement Savings Assessment, the typical American household is on track to have 83 percent of the income they’ll need over the course of their expected retirement years – with about half in even better shape than that. To put this into perspective, fifteen years ago, when the assessment was first conducted, the projected figure was a bleaker 62 percent.
The study is based on a comprehensive national survey of 3,234 people identified as saving for retirement, age 25 to 74 in households earning at least $20,000 annually, and looked at assets such as retirement accounts, home equity, inheritances, and current or expected pensions and Social Security benefits
Fidelity actually used color-coded indicators to give a fuller picture of households’ ability to cover their estimated expenses in a down market during those later years:
• Dark Green (“On Target”). Thirty-seven percent were on track to handle more than 95 percent of their expected expenses (up 5 percentage points from 2018).
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