Americans’ 401(k) Savings Not Cutting It, According to Reports

By Heather Taylor0 Comments
Recent reports tracking retirement account balances reveal that on average, Americans don’t have nearly enough saved in their 401(k) to cover the expenses they’ll encounter in retirement.

A recent article on cites an Employee Benefit Research Institute report showing that the median amount in a 401(k) is $18,433. The median is higher for 401(k) holders ages 55 to 64, but it still doesn’t amount to a comfortable income. This unpreparedness is being partially blamed on a change in the way Americans’ retirement accounts are funded compared to past generations.

“Shifting the responsibility for growing retirement income from employers to individuals has proved problematic for many American workers, particularly in the face of wage stagnation and a lack of investment expertise. For them, the grand 401(k) experiment has been a failure.”

Concerned workers have an option beyond trying to figure out the stock market and hoping for the best with traditional 401(k)s. Many investors have decided to remove their savings from the stock market and take control of their retirement savings by using self-directed retirement accounts – including IRAs and 401(k)s to invest in what they know. Permitted alternative investments in a self-directed IRA can include real estate, tax liens, private entities, and more.

Richard A. of New Jersey is one of the investors who took matters into his own hands, moving his retirement fund from stock options to a self-directed IRA so he could grow his savings with real estate. See how he has done.

Looking for your own alternative to the stock market? Schedule a free, no-obligation, one-on-one IRA checkup with an Equity Trust Senior Account Executive and discover the options available to make sure you’re ready when it’s time for retirement.