Friday, December 3, 2010

Study: 81 Per Cent in 401(k) won't be able to retire at 65

Eighty-one percent of employees in 401(k) plans won’t be able to retire at 65, according to a study by Nyhart, an employee benefit consulting, actuarial and administration firm.

The study’s analysis of 401(k) plans at 110 public and private companies also found that the average participant relying on a 401(k) as the primary savings source will have to keep working until 73 to achieve an adequate retirement income, confirmed James Burnes, a Nyhart spokesman. He said the study of Nyhart’s 401(k) clients examined records of more than 10,000 participants.

According to the Nyhart study, employees “have not been given the appropriate tools to appreciate the importance” of contributing significantly to retirement savings plans.

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