The U.S. retirement savings crisis continues to worsen, and the typical working household still has virtually no retirement savings, according to a new report by the National Institute on Retirement Security (NIRS).
The group found that the median retirement account balance for all working-age households is just $2,500. For those nearing retirement, the number is no more comforting; median retirement savings for households with members aged 55 to 64 is only $14,500.
Overall, 40% of working households have no retirement savings.
NIRS based its findings on an analysis of the Survey of Consumer Finances from the U.S. Federal Reserve Bank.
The stock market surge of the last two years has done little to improve retirement readiness, NIRS found.
“The financial crisis of 2007-2008 was a huge setback for households. Since then, the combined value of 401(k) accounts and IRAs increased to a record high of $11.3 trillion at the end of 2013,” the report notes. However, “the typical American household was further behind in retirement readiness in 2013 than in 2010 and 2007.”
Only 55% of working age adults have a dedicated retirement fund, such as a mutual fund or IRA. That’s the same percentage as have access to a defined-contribution retirement plan at work.