Experts suggest 10-15% of gross income for retirement savings

  • Half of Americans contributing 6% or less of their income to retirement savings
  • Experts suggest saving 10-15% of gross income for retirement
  • Fidelity Investments recommends saving 15% including employer match
  • 40% of America may run out of money before they die
  • Lack of access to a 401(k) plan is an issue for many workers

A recent study by insurance company MassMutual found that almost half of Americans not yet retired don’t have enough saved for their desired retirement age. Experts suggest saving 10-15% of gross income, including employer match, but factors like student loans and lack of access to a 401(k) plan hinder many from achieving this goal. Fidelity Investments recommends saving 15% annually. About 40% of Americans may run out of money before they die.

Factuality Level: 8
Factuality Justification: The article provides a balanced view of the issue by including different perspectives from financial experts on how much people should be saving for retirement and discusses various factors affecting retirement savings such as student loans, housing costs, lack of access to retirement plans, and inertia. It also highlights the importance of starting early and taking risks with investments.
Noise Level: 4
Noise Justification: The article provides some useful information on retirement savings rates and expert opinions, but it also contains repetitive information and lacks in-depth analysis or actionable insights. The author could have explored the reasons behind the confusion around retirement savings rates more thoroughly and provided more concrete advice for readers to follow.
Public Companies: Fidelity Investments (N/A), MassMutual (N/A)
Key People: Katherine Tierney (Senior Strategist for Retirement at Edward Jones), Bruce Tannahill (Director of Estate and Business Planning at MassMutual), Joshua Gotbaum (Guest Scholar in the Economic Studies Program at the Brookings Institution)

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the savings rates and target investing amounts for retirement, which can impact individual financial planning and investment decisions.
Financial Rating Justification: This article is financially relevant as it addresses the topic of retirement savings and investment percentages, which are crucial aspects of personal finance. It also mentions how people’s financial situations and choices may affect their ability to save for retirement, potentially impacting the financial markets through changes in investor behavior.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses retirement savings and financial advice but does not mention any extreme event that occurred in the last 48 hours.·
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Small
Affected Instruments: Stocks

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