According to results of the firm’s “Fall 2010 401(k) Retirement Readiness Study,” the average participant, relying on their 401(k) as a primary retirement vehicle, will not be able to retire until the age of 73.
A press release said employees over age 55 will need to contribute more than 45% of pay to their 401(k) plans through the remainder of their career to retire by age 65. Most employees ages 60-64 will likely need to work until the age of 75 to be able to afford to retire at their current levels of contribution to their 401(k).
The study also found seven in 10 employees ages 24 and under are not expected to retire by age 65.The six-month study reviewed nearly 10,000 retirement accounts from employees at 110 public and private companies. Results can be downloaded from http://www.nyhart.com.