A Wealth of Common Sense: How Many Americans Don’t Save For Retirement?

With the stock market in decline, many retail traders may be rethinking their position. Some may even be headed for the exits. However, the latest data shows that investors remain just the top half of the American economy.

Just half of Americans own retirement assets such as stocks and bonds. The ratio is higher for those under 35 and over 75. Those in their working years are faring the best.

Overall, the picture isn’t great. Older households without retirement assets will be dependent on programs such as Social Security. At least younger households have time to play catch-up with their portfolios by investing today.

Currently, about 70% of private-sector investors have access to a 401(k) plan. That’s up from 60% a decade ago. Many 401(k) plans provide some employer matching behind them as well.

Overall, however, even mix of investors and non-investors shows the divisions across America today. Non-investors rely nearly entirely on Social Security to avoid total poverty. One estimate puts 16.3 million adults in this category.

A 401(k) plan is no guarantee of investment success or indefinite wealth in retirement. But it can at least create a strong cushion for a better retirement. Investors may want to increase their 401(k) contributions amid the latest market decline.

To see the full analysis, click here.