J.P. Morgan Finds Only 1 in 6 Workers Reach 10% Retirement Saving Rate

4 articles · Updated · IndexBox, Inc. · May 15

More than 12 million defined-contribution plan participants studied by J.P. Morgan typically saved under 5% in their 20s and only about 8% near retirement, below the 10% benchmark.
Just 1 in 6 workers ever hit a double-digit contribution rate, and even among the highest-earning third across age groups only 22% reached 10% or more.
Workers in their early to mid-20s saved 3.7% to 4.5% of pay, while those from their late 20s to early 40s saved 4.6% to 6.1%, reflecting pressure from living costs and retirement being seen as distant.
A 1-percentage-point increase starting at age 25 and maintained for 40 years could add about $84,000 to retirement balances, underscoring the payoff from early, steady increases.
Debt, loans from retirement accounts and cashing out when changing jobs can further erode progress, while some advisers now recommend saving about 15% including employer matches.

If your retirement date can alter your wealth by 66%, is timing more important than how much you saved?

With living costs soaring, is the advice to 'just save more' ignoring the real barriers facing American workers?

As private funds enter 401(k)s, are savers getting higher returns or just inheriting Wall Street's risk?