The Fidelity Retirement Index found that the percentage of projected pre-retirement income that the typical working American household is on track to replace in retirement is 56%, down from 59% earlier this year. Despite a modest increase in reported personal retirement savings, the typical working American household is still far short of replacing 85% or more of pre-retirement income, one retirement planning estimate.
A Fidelity news release said that according to the Index, fewer households expect pensions, and anticipated income from pensions decreased by approximately 6% to $18,000, down from $19,200 reported in the spring survey (See Fidelity: Americans’ Retirement Savings Way behind Schedule ). The Index also revealed that the typical working American household reportedly saved $20,000 for retirement, an increase of approximately 7% from $18,750 last spring.
“While we are encouraged that Americans have reported increased savings in the last few months, they are still relying too heavily on pensions and Social Security to fund their retirement,” said Jeffrey Carney, president of Fidelity Personal Investments, in the news release. “Americans must work hard to increase their contributions to workplace and personal savings plans if they are to meet their retirement goals, and take advantage of automatic deduction and employer match programs.”