Fewer than one in five workers will be able to maintain their lifestyle upon retirement, with women being at a disadvantage because of their longer life spans and lower pay, according to a study released Tuesday. On average, employees are projected to replace just 85 percent of their income in retirement, compared to the 126 percent they would need when factoring in inflation, longer life spans and medical costs, the study by Hewitt Associates found.
This is another reason not to delay saving for retirement just because you are young. It’s unfortunate, but I think a lot of Baby Boomers around my parents age simply won’t be able to retire when they want to because of insufficient retirement savings. I’ll be so happy when I crush my consumer debt so more of my money can be funneled into my retirement fund.