| Simulations performed by the Government Accountability Office (GAO) show that households, on average, would save enough in their DC plans over their careers to generate monthly lifetime income at retirement, as measured by an annuity equivalent, of about $2,970 in 2015 dollars. Households in the low-earnings group would accumulate DC plan savings equivalent to an average annuity of about $560 per month in retirement, while households in the high-earnings group would save enough to receive about 11 times more annuity income from DC plans than low-earning households, on average. However, the GAO found many decisions, some within the control of workers and some within the control of plan sponsors, can have significant effects on projected balances of DC savings.Read more > |
