Are You One of the Many Retirees Who Are Falling Short on Retirement Income

As the retirement age approaches, many retirees are finding that they are not adequately prepared for their golden years.

According to a recent study conducted by the Employee Benefit Research Institute (EBRI), the average retiree falls short in their retirement income replacement ratio, which is the comparison of pre-retirement income to post-retirement income.

The study examined the retirement income replacement ratio of 3,000 retirees aged 55 and older…

The results revealed that the median replacement ratio was only 55%, meaning that many retirees are only receiving half of their pre-retirement income.

This shortfall can make it difficult to maintain a comfortable lifestyle in retirement.

The study also revealed that the replacement ratio was significantly lower for lower-income households than for higher-income households.

For example, the median replacement ratio for households in the lowest income quartile was only 40%. This suggests that these households are not taking full advantage of the available retirement planning tools.

The study also found that those who had access to employer-sponsored retirement plans, such as 401(k)s and pensions, had a higher replacement ratio than those who did not.

This highlights the importance of having access to a well-structured retirement plan.

Overall, the study reveals that many retirees are falling short on their retirement income replacement ratio, which can have serious implications for their retirement security.

Those who are nearing retirement should make sure that they are taking full advantage of the tools available to them, such as employer-sponsored retirement plans, to ensure that they are adequately prepared for their retirement.

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